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

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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 is more attractive to value investors? We'll need to take a closer look to find out.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies 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. 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.

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 12.86, while HHR has a forward P/E of 42.90. We also note that BGSF has a PEG ratio of 0.64. 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 1.51.

Another notable valuation metric for BGSF is its P/B ratio of 1.99. 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, HHR has a P/B of 53.12.

These metrics, and several others, help BGSF earn a Value grade of A, while HHR has been given 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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