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IQV or SWCH: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Technology Services sector have probably already heard of IQVIA Holdings (IQV - Free Report) and Switch . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
IQVIA Holdings has a Zacks Rank of #2 (Buy), while Switch has a Zacks Rank of #3 (Hold) right now. This means that IQV's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
IQV currently has a forward P/E ratio of 23.69, while SWCH has a forward P/E of 81.63. We also note that IQV has a PEG ratio of 1.96. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SWCH currently has a PEG ratio of 5.44.
Another notable valuation metric for IQV is its P/B ratio of 3.26. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SWCH has a P/B of 4.52.
These metrics, and several others, help IQV earn a Value grade of B, while SWCH has been given a Value grade of F.
IQV stands above SWCH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that IQV is the superior value option right now.
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IQV or SWCH: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Technology Services sector have probably already heard of IQVIA Holdings (IQV - Free Report) and Switch . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
IQVIA Holdings has a Zacks Rank of #2 (Buy), while Switch has a Zacks Rank of #3 (Hold) right now. This means that IQV's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
IQV currently has a forward P/E ratio of 23.69, while SWCH has a forward P/E of 81.63. We also note that IQV has a PEG ratio of 1.96. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SWCH currently has a PEG ratio of 5.44.
Another notable valuation metric for IQV is its P/B ratio of 3.26. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SWCH has a P/B of 4.52.
These metrics, and several others, help IQV earn a Value grade of B, while SWCH has been given a Value grade of F.
IQV stands above SWCH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that IQV is the superior value option right now.