Back to top

Image: Bigstock

ASGN vs. DT: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors looking for stocks in the Computers - IT Services sector might want to consider either ASGN Inc (ASGN - Free Report) or Dynatrace (DT - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both ASGN Inc and Dynatrace are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

ASGN currently has a forward P/E ratio of 17.92, while DT has a forward P/E of 74.98. We also note that ASGN has a PEG ratio of 2.30. 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. DT currently has a PEG ratio of 2.36.

Another notable valuation metric for ASGN is its P/B ratio of 2.89. 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, DT has a P/B of 11.55.

Based on these metrics and many more, ASGN holds a Value grade of A, while DT has a Value grade of F.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


ASGN Incorporated (ASGN) - free report >>

Dynatrace, Inc. (DT) - free report >>

Published in