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III vs. NVEE: Which Stock Is the Better Value Option?

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Investors with an interest in Consulting Services stocks have likely encountered both Information Services Group (III - Free Report) and NV5 Holdings (NVEE - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Information Services Group and NV5 Holdings are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that III likely has seen a stronger improvement to its earnings outlook than NVEE has recently. 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.

III currently has a forward P/E ratio of 10.53, while NVEE has a forward P/E of 18.53. We also note that III has a PEG ratio of 0.75. 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. NVEE currently has a PEG ratio of 0.99.

Another notable valuation metric for III is its P/B ratio of 2.46. 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, NVEE has a P/B of 3.03.

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

III sticks out from NVEE in both our Zacks Rank and Style Scores models, so value investors will likely feel that III is the better option right now.


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