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CACI vs. PRFT: Which Stock Is the Better Value Option?

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Investors with an interest in Computer - Services stocks have likely encountered both CACI International (CACI - Free Report) and Perficient (PRFT - 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, CACI International has a Zacks Rank of #2 (Buy), while Perficient has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CACI likely has seen a stronger improvement to its earnings outlook than PRFT has recently. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

CACI currently has a forward P/E ratio of 15.55, while PRFT has a forward P/E of 26.87. We also note that CACI has a PEG ratio of 1.19. 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. PRFT currently has a PEG ratio of 1.92.

Another notable valuation metric for CACI is its P/B ratio of 2.44. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, PRFT has a P/B of 6.95.

These are just a few of the metrics contributing to CACI's Value grade of A and PRFT's Value grade of C.

CACI sticks out from PRFT in both our Zacks Rank and Style Scores models, so value investors will likely feel that CACI is the better option right now.


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