Back to top

Image: Bigstock

BV vs. CRCM: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors with an interest in Consumer Services - Miscellaneous stocks have likely encountered both BrightView Holdings (BV - Free Report) and Care.com . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, BrightView Holdings is sporting a Zacks Rank of #2 (Buy), while Care.com has a Zacks Rank of #3 (Hold). This means that BV'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 analyze a variety of traditional, tried-and-true metrics to help find companies 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.

BV currently has a forward P/E ratio of 13.15, while CRCM has a forward P/E of 32.65. We also note that BV has a PEG ratio of 0.47. 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. CRCM currently has a PEG ratio of 2.18.

Another notable valuation metric for BV is its P/B ratio of 2.10. 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, CRCM has a P/B of 6.78.

These metrics, and several others, help BV earn a Value grade of A, while CRCM has been given a Value grade of D.

BV 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 BV is likely the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


BrightView Holdings, Inc. (BV) - free report >>