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LOGM vs. MANT: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Computer - Services stocks have likely encountered both LogMein and ManTech International . 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

LogMein and ManTech International are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.

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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

LOGM currently has a forward P/E ratio of 16.23, while MANT has a forward P/E of 27.67. We also note that LOGM has a PEG ratio of 1.30. 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. MANT currently has a PEG ratio of 3.46.

Another notable valuation metric for LOGM is its P/B ratio of 1.39. 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, MANT has a P/B of 1.76.

These metrics, and several others, help LOGM earn a Value grade of B, while MANT has been given a Value grade of C.

Both LOGM and MANT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that LOGM is the superior value option right now.

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