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HPE or NCR: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Computer - Integrated Systems sector might want to consider either Hewlett Packard Enterprise (HPE - Free Report) or NCR . 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.
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 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.
Hewlett Packard Enterprise has a Zacks Rank of #2 (Buy), while NCR has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HPE has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
HPE currently has a forward P/E ratio of 9.29, while NCR has a forward P/E of 11.49. We also note that HPE has a PEG ratio of 1.47. 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. NCR currently has a PEG ratio of 2.87.
Another notable valuation metric for HPE is its P/B ratio of 1.14. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NCR has a P/B of 8.46.
These are just a few of the metrics contributing to HPE's Value grade of B and NCR's Value grade of C.
HPE has seen stronger estimate revision activity and sports more attractive valuation metrics than NCR, so it seems like value investors will conclude that HPE is the superior option right now.
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HPE or NCR: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Computer - Integrated Systems sector might want to consider either Hewlett Packard Enterprise (HPE - Free Report) or NCR . 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.
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 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.
Hewlett Packard Enterprise has a Zacks Rank of #2 (Buy), while NCR has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HPE has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
HPE currently has a forward P/E ratio of 9.29, while NCR has a forward P/E of 11.49. We also note that HPE has a PEG ratio of 1.47. 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. NCR currently has a PEG ratio of 2.87.
Another notable valuation metric for HPE is its P/B ratio of 1.14. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NCR has a P/B of 8.46.
These are just a few of the metrics contributing to HPE's Value grade of B and NCR's Value grade of C.
HPE has seen stronger estimate revision activity and sports more attractive valuation metrics than NCR, so it seems like value investors will conclude that HPE is the superior option right now.