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VOLT vs. HHR: Which Stock Is the Better Value Option?

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Investors with an interest in Business - Services stocks have likely encountered both Volt Information Sciences and HeadHunter Group PLC Sponsored ADR (HHR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Volt Information Sciences and HeadHunter Group PLC Sponsored ADR are both sporting a Zacks Rank of # 2 (Buy) right now. 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 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.

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 19.52, while HHR has a forward P/E of 41.80. We also note that VOLT has a PEG ratio of 1.30. 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. HHR currently has a PEG ratio of 1.47.

Another notable valuation metric for VOLT is its P/B ratio of 3.64. 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 35.96.

Based on these metrics and many more, VOLT holds a Value grade of B, while HHR has a Value grade of D.

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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