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VOLT or HHR: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Business - Services sector might want to consider either Volt Information Sciences or HeadHunter Group PLC Sponsored ADR (HHR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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.

Right now, both Volt Information Sciences and HeadHunter Group PLC Sponsored ADR are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture 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 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.

VOLT currently has a forward P/E ratio of 15.80, while HHR has a forward P/E of 36.28. We also note that VOLT has a PEG ratio of 1.05. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HHR currently has a PEG ratio of 1.28.

Another notable valuation metric for VOLT is its P/B ratio of 2.95. 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, HHR has a P/B of 31.22.

These are just a few of the metrics contributing to VOLT's Value grade of B and HHR's Value grade of F.

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


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