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CLGX vs. IT: Which Stock Is the Better Value Option?

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Investors interested in Consulting Services stocks are likely familiar with CoreLogic and Gartner (IT - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 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, CoreLogic is sporting a Zacks Rank of #1 (Strong Buy), while Gartner has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CLGX has an improving earnings outlook. However, value investors will care about much more than just this.

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.

CLGX currently has a forward P/E ratio of 19.01, while IT has a forward P/E of 40.59. We also note that CLGX has a PEG ratio of 1.58. 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. IT currently has a PEG ratio of 4.06.

Another notable valuation metric for CLGX is its P/B ratio of 5.40. 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, IT has a P/B of 12.51.

These are just a few of the metrics contributing to CLGX's Value grade of B and IT's Value grade of D.

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


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