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DOX vs. EPAM: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Computers - IT Services sector have probably already heard of Amdocs (DOX - Free Report) and Epam (EPAM - 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.
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.
Amdocs and Epam are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DOX has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
DOX currently has a forward P/E ratio of 14.80, while EPAM has a forward P/E of 37.05. We also note that DOX has a PEG ratio of 1.74. 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. EPAM currently has a PEG ratio of 1.89.
Another notable valuation metric for DOX is its P/B ratio of 2.53. 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, EPAM has a P/B of 7.90.
Based on these metrics and many more, DOX holds a Value grade of A, while EPAM has a Value grade of D.
DOX sticks out from EPAM in both our Zacks Rank and Style Scores models, so value investors will likely feel that DOX is the better option right now.
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DOX vs. EPAM: Which Stock Is the Better Value Option?
Investors interested in stocks from the Computers - IT Services sector have probably already heard of Amdocs (DOX - Free Report) and Epam (EPAM - 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.
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.
Amdocs and Epam are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DOX has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
DOX currently has a forward P/E ratio of 14.80, while EPAM has a forward P/E of 37.05. We also note that DOX has a PEG ratio of 1.74. 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. EPAM currently has a PEG ratio of 1.89.
Another notable valuation metric for DOX is its P/B ratio of 2.53. 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, EPAM has a P/B of 7.90.
Based on these metrics and many more, DOX holds a Value grade of A, while EPAM has a Value grade of D.
DOX sticks out from EPAM in both our Zacks Rank and Style Scores models, so value investors will likely feel that DOX is the better option right now.