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DELL vs. EPAM: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Computers - IT Services sector have probably already heard of Dell Technologies (DELL - Free Report) and Epam (EPAM - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Dell Technologies is sporting a Zacks Rank of #2 (Buy), while Epam has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DELL likely has seen a stronger improvement to its earnings outlook than EPAM has recently. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
DELL currently has a forward P/E ratio of 11.29, while EPAM has a forward P/E of 68.60. We also note that DELL has a PEG ratio of 0.94. 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. EPAM currently has a PEG ratio of 2.59.
Another notable valuation metric for DELL is its P/B ratio of 8.10. 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, EPAM has a P/B of 14.70.
These metrics, and several others, help DELL earn a Value grade of A, while EPAM has been given a Value grade of D.
DELL has seen stronger estimate revision activity and sports more attractive valuation metrics than EPAM, so it seems like value investors will conclude that DELL is the superior option right now.
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DELL vs. EPAM: Which Stock Is the Better Value Option?
Investors interested in stocks from the Computers - IT Services sector have probably already heard of Dell Technologies (DELL - Free Report) and Epam (EPAM - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Dell Technologies is sporting a Zacks Rank of #2 (Buy), while Epam has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DELL likely has seen a stronger improvement to its earnings outlook than EPAM has recently. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
DELL currently has a forward P/E ratio of 11.29, while EPAM has a forward P/E of 68.60. We also note that DELL has a PEG ratio of 0.94. 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. EPAM currently has a PEG ratio of 2.59.
Another notable valuation metric for DELL is its P/B ratio of 8.10. 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, EPAM has a P/B of 14.70.
These metrics, and several others, help DELL earn a Value grade of A, while EPAM has been given a Value grade of D.
DELL has seen stronger estimate revision activity and sports more attractive valuation metrics than EPAM, so it seems like value investors will conclude that DELL is the superior option right now.