IKTSY or VRSK: Which Is the Better Value Stock Right Now?

VRSK IKTSY

Investors looking for stocks in the Business - Information Services sector might want to consider either INTERTEK GP (IKTSY - Free Report) or Verisk Analytics (VRSK - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, INTERTEK GP has a Zacks Rank of #2 (Buy), while Verisk Analytics has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that IKTSY likely has seen a stronger improvement to its earnings outlook than VRSK has recently. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

IKTSY currently has a forward P/E ratio of 20.05, while VRSK has a forward P/E of 39.67. We also note that IKTSY has a PEG ratio of 2.75. 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. VRSK currently has a PEG ratio of 4.48.

Another notable valuation metric for IKTSY is its P/B ratio of 5.82. 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, VRSK has a P/B of 397.43.

These metrics, and several others, help IKTSY earn a Value grade of B, while VRSK has been given a Value grade of D.

IKTSY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that IKTSY is likely the superior value option right now.

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