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PRFT vs. FORR: Which Stock Is the Better Value Option?

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Investors with an interest in Computer - Services stocks have likely encountered both Perficient (PRFT - Free Report) and Forrester Research (FORR - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Perficient and Forrester Research are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.

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.

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.

PRFT currently has a forward P/E ratio of 19.28, while FORR has a forward P/E of 28.06. We also note that PRFT has a PEG ratio of 1.61. 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. FORR currently has a PEG ratio of 2.34.

Another notable valuation metric for PRFT is its P/B ratio of 3.56. 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, FORR has a P/B of 3.93.

These are just a few of the metrics contributing to PRFT's Value grade of B and FORR's Value grade of C.

Both PRFT and FORR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PRFT is the superior value option right now.


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Forrester Research, Inc. (FORR) - free report >>

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