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CNXC vs. HHR: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Business - Services stocks have likely encountered both Concentrix Corporation (CNXC - Free Report) and HeadHunter Group PLC Sponsored ADR (HHR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Concentrix Corporation and HeadHunter Group PLC Sponsored ADR are both sporting a Zacks Rank of # 2 (Buy) right now. 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. However, value investors will care about much more than just this.

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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

CNXC currently has a forward P/E ratio of 16.57, while HHR has a forward P/E of 40.53. We also note that CNXC has a PEG ratio of 0.70. 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. HHR currently has a PEG ratio of 1.43.

Another notable valuation metric for CNXC is its P/B ratio of 3.29. 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, HHR has a P/B of 34.88.

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

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


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