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HPE vs. ITI: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Computer - Integrated Systems sector have probably already heard of Hewlett Packard Enterprise (HPE - Free Report) and Iteris (ITI - 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, both Hewlett Packard Enterprise and Iteris are holding a Zacks Rank of # 2 (Buy). 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 only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HPE currently has a forward P/E ratio of 7.44, while ITI has a forward P/E of 29.33. We also note that HPE has a PEG ratio of 1.92. 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. ITI currently has a PEG ratio of 2.93.
Another notable valuation metric for HPE is its P/B ratio of 0.74. 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, ITI has a P/B of 2.64.
Based on these metrics and many more, HPE holds a Value grade of A, while ITI has a Value grade of F.
Both HPE and ITI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HPE is the superior value option right now.
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HPE vs. ITI: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Computer - Integrated Systems sector have probably already heard of Hewlett Packard Enterprise (HPE - Free Report) and Iteris (ITI - 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, both Hewlett Packard Enterprise and Iteris are holding a Zacks Rank of # 2 (Buy). 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 only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HPE currently has a forward P/E ratio of 7.44, while ITI has a forward P/E of 29.33. We also note that HPE has a PEG ratio of 1.92. 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. ITI currently has a PEG ratio of 2.93.
Another notable valuation metric for HPE is its P/B ratio of 0.74. 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, ITI has a P/B of 2.64.
Based on these metrics and many more, HPE holds a Value grade of A, while ITI has a Value grade of F.
Both HPE and ITI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HPE is the superior value option right now.