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

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Investors interested in Computer - Services stocks are likely familiar with 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

LogMein and ManTech International are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.

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.

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.

LOGM currently has a forward P/E ratio of 13.20, while MANT has a forward P/E of 29.58. We also note that LOGM has a PEG ratio of 2.64. 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 3.70.

Another notable valuation metric for LOGM is its P/B ratio of 1.19. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, MANT has a P/B of 1.91.

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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