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FORR vs. PRFT: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Computer - Services sector have probably already heard of Forrester Research (FORR - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Right now, both Forrester Research and Perficient are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
FORR currently has a forward P/E ratio of 26.80, while PRFT has a forward P/E of 35.95. We also note that FORR has a PEG ratio of 1.91. 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 2.25.
Another notable valuation metric for FORR is its P/B ratio of 4.60. 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 9.44.
These metrics, and several others, help FORR earn a Value grade of B, while PRFT has been given a Value grade of D.
Both FORR and PRFT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FORR is the superior value option right now.
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FORR vs. PRFT: Which Stock Is the Better Value Option?
Investors interested in stocks from the Computer - Services sector have probably already heard of Forrester Research (FORR - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Right now, both Forrester Research and Perficient are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
FORR currently has a forward P/E ratio of 26.80, while PRFT has a forward P/E of 35.95. We also note that FORR has a PEG ratio of 1.91. 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 2.25.
Another notable valuation metric for FORR is its P/B ratio of 4.60. 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 9.44.
These metrics, and several others, help FORR earn a Value grade of B, while PRFT has been given a Value grade of D.
Both FORR and PRFT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FORR is the superior value option right now.