CRAI vs. NVEE: Which Stock Is the Better Value Option?

CRAI NVEE

Investors interested in stocks from the Consulting Services sector have probably already heard of CRA International (CRAI - Free Report) and NV5 Holdings (NVEE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

CRA International and NV5 Holdings are both sporting a Zacks Rank of # 2 (Buy) right now. 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 just one piece of the puzzle 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.

CRAI currently has a forward P/E ratio of 17.47, while NVEE has a forward P/E of 30.31. We also note that CRAI has a PEG ratio of 1.13. 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. NVEE currently has a PEG ratio of 1.70.

Another notable valuation metric for CRAI is its P/B ratio of 3.43. 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, NVEE has a P/B of 3.51.

These are just a few of the metrics contributing to CRAI's Value grade of A and NVEE's Value grade of C.

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

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