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

ACN CRAI

Investors interested in Consulting Services stocks are likely familiar with CRA International (CRAI - 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.

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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, CRA International is sporting a Zacks Rank of #2 (Buy), while Accenture has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CRAI is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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 19.93, while ACN has a forward P/E of 26.51. We also note that CRAI has a PEG ratio of 1.53. 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 2.79.

Another notable valuation metric for CRAI is its P/B ratio of 3.78. 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, ACN has a P/B of 8.36.

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

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

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