III or FC: Which Is the Better Value Stock Right Now?

III FC

Investors with an interest in Consulting Services stocks have likely encountered both Information Services Group (III - Free Report) and Franklin Covey (FC - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Information Services Group and Franklin Covey are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

III currently has a forward P/E ratio of 11.80, while FC has a forward P/E of 743.33. We also note that III has a PEG ratio of 0.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FC currently has a PEG ratio of 49.56.

Another notable valuation metric for III is its P/B ratio of 1.54. 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, FC has a P/B of 5.21.

Based on these metrics and many more, III holds a Value grade of A, while FC has a Value grade of C.

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

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