BCOR vs. IQV: Which Stock Is the Better Value Option?

IQV

Investors interested in stocks from the Technology Services sector have probably already heard of Blucora and IQVIA Holdings (IQV - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Blucora and IQVIA Holdings 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 BCOR has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

BCOR currently has a forward P/E ratio of 13.21, while IQV has a forward P/E of 25.10. We also note that BCOR has a PEG ratio of 0.66. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. IQV currently has a PEG ratio of 1.79.

Another notable valuation metric for BCOR is its P/B ratio of 2.10. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, IQV has a P/B of 4.57.

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

BCOR sticks out from IQV in both our Zacks Rank and Style Scores models, so value investors will likely feel that BCOR is the better option right now.

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