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CACI or FORR: Which Is the Better Value Stock Right Now?

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Investors with an interest in Computer - Services stocks have likely encountered both CACI International (CACI - Free Report) and Forrester Research (FORR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, CACI International is sporting a Zacks Rank of #2 (Buy), while Forrester Research has a Zacks Rank of #3 (Hold). This means that CACI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

CACI currently has a forward P/E ratio of 15.65, while FORR has a forward P/E of 27.48. We also note that CACI has a PEG ratio of 1.59. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FORR currently has a PEG ratio of 2.29.

Another notable valuation metric for CACI is its P/B ratio of 2.07. 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, FORR has a P/B of 4.65.

These metrics, and several others, help CACI earn a Value grade of A, while FORR has been given a Value grade of C.

CACI is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CACI is likely the superior value option right now.


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CACI International, Inc. (CACI) - free report >>

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