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GPX vs. STRA: Which Stock Is the Better Value Option?

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Investors interested in Schools stocks are likely familiar with GP Strategies and Strategic Education (STRA - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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.

GP Strategies and Strategic Education 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 GPX has an improving earnings outlook. But this is only part of the picture for value investors.

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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

GPX currently has a forward P/E ratio of 12.18, while STRA has a forward P/E of 21.47. We also note that GPX has a PEG ratio of 0.81. 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. STRA currently has a PEG ratio of 1.43.

Another notable valuation metric for GPX is its P/B ratio of 1.21. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, STRA has a P/B of 2.41.

Based on these metrics and many more, GPX holds a Value grade of A, while STRA has a Value grade of D.

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


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