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BCOR or NRILY: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Technology Services sector might want to consider either Blucora or NOMURA RESH LTD (NRILY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Blucora is sporting a Zacks Rank of #2 (Buy), while NOMURA RESH LTD has a Zacks Rank of #4 (Sell). This means that BCOR'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.

BCOR currently has a forward P/E ratio of 22.07, while NRILY has a forward P/E of 25.70. We also note that BCOR has a PEG ratio of 1.10. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NRILY currently has a PEG ratio of 2.86.

Another notable valuation metric for BCOR is its P/B ratio of 2.59. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NRILY has a P/B of 2.77.

These are just a few of the metrics contributing to BCOR's Value grade of B and NRILY's Value grade of C.

BCOR has seen stronger estimate revision activity and sports more attractive valuation metrics than NRILY, so it seems like value investors will conclude that BCOR is the superior option right now.


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