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CACI vs. FORR: Which Stock Should Value Investors Buy Now?

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Investors interested in Computer - Services stocks are likely familiar with CACI International (CACI - Free Report) and Forrester Research (FORR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

CACI International has a Zacks Rank of #2 (Buy), while Forrester Research has a Zacks Rank of #4 (Sell) right now. This means that CACI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

CACI currently has a forward P/E ratio of 19.85, while FORR has a forward P/E of 33.57. We also note that CACI has a PEG ratio of 1.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FORR currently has a PEG ratio of 2.80.

Another notable valuation metric for CACI is its P/B ratio of 2.21. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, FORR has a P/B of 5.86.

Based on these metrics and many more, CACI holds a Value grade of B, while FORR has a Value grade of C.

CACI is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CACI is likely the superior value option right now.


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CACI International, Inc. (CACI) - free report >>

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