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

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Investors interested in Business - Services stocks are likely familiar with BGSF (BGSF - 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.

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.

Both BGSF and HeadHunter Group PLC Sponsored ADR have 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 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.

BGSF currently has a forward P/E ratio of 13.91, while HHR has a forward P/E of 44.62. We also note that BGSF has a PEG ratio of 0.70. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HHR currently has a PEG ratio of 1.57.

Another notable valuation metric for BGSF is its P/B ratio of 2.03. 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 39.51.

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

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


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BGSF, Inc. (BGSF) - free report >>

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