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

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Investors looking for stocks in the Consulting Services sector might want to consider either CRA International (CRAI - Free Report) or Accenture (ACN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.

CRA International has a Zacks Rank of #2 (Buy), while Accenture has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CRAI likely has seen a stronger improvement to its earnings outlook than ACN has recently. But this is just one factor that value investors are interested in.

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.

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.

CRAI currently has a forward P/E ratio of 14.92, while ACN has a forward P/E of 27.02. We also note that CRAI has a PEG ratio of 1.15. 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 2.70.

Another notable valuation metric for CRAI is its P/B ratio of 1.58. 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, ACN has a P/B of 8.17.

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

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


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