NVEE vs. ACN: Which Stock Should Value Investors Buy Now?

ACN NVEE

Investors interested in Consulting Services stocks are likely familiar with NV5 Holdings (NVEE - Free Report) and Accenture (ACN - 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

NV5 Holdings and Accenture 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 NVEE has an improving earnings outlook. 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.

NVEE currently has a forward P/E ratio of 23.14, while ACN has a forward P/E of 34.79. We also note that NVEE has a PEG ratio of 1.44. 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. ACN currently has a PEG ratio of 3.48.

Another notable valuation metric for NVEE is its P/B ratio of 2.63. 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, ACN has a P/B of 10.92.

Based on these metrics and many more, NVEE holds a Value grade of B, while ACN has a Value grade of C.

NVEE stands above ACN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NVEE is the superior value option right now.

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