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

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Investors interested in Consulting Services stocks are likely familiar with 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

NV5 Holdings has a Zacks Rank of #2 (Buy), while Accenture has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that NVEE likely has seen a stronger improvement to its earnings outlook than ACN has recently. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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 20.08, while ACN has a forward P/E of 32.77. We also note that NVEE has a PEG ratio of 1.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ACN currently has a PEG ratio of 3.28.

Another notable valuation metric for NVEE is its P/B ratio of 2.58. 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 9.52.

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

NVEE has seen stronger estimate revision activity and sports more attractive valuation metrics than ACN, so it seems like value investors will conclude that NVEE is the superior option right now.


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