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BGSF vs. CCRN: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Staffing Firms sector have probably already heard of BG Staffing (BGSF - Free Report) and Cross Country Healthcare (CCRN - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

BG Staffing and Cross Country Healthcare are sporting Zacks Ranks of #1 (Strong 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 BGSF has an improving earnings outlook. But this is just one piece of the puzzle 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.

BGSF currently has a forward P/E ratio of 10.19, while CCRN has a forward P/E of 50.25. We also note that BGSF has a PEG ratio of 0.51. 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. CCRN currently has a PEG ratio of 4.19.

Another notable valuation metric for BGSF is its P/B ratio of 1.51. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CCRN has a P/B of 1.68.

These are just a few of the metrics contributing to BGSF's Value grade of A and CCRN's Value grade of C.

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


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Cross Country Healthcare, Inc. (CCRN) - free report >>

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