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NVEE vs. ACN: Which Stock Is the Better Value Option?

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Investors with an interest in Consulting Services stocks have likely encountered both NV5 Holdings (NVEE - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, NV5 Holdings is sporting a Zacks Rank of #2 (Buy), while Accenture has a Zacks Rank of #3 (Hold). This means that NVEE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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.

NVEE currently has a forward P/E ratio of 15.62, while ACN has a forward P/E of 26.18. We also note that NVEE has a PEG ratio of 1.14. 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 2.62.

Another notable valuation metric for NVEE is its P/B ratio of 1.75. 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, ACN has a P/B of 7.80.

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

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


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