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ASGN vs. INOV: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Computers - IT Services stocks have likely encountered both ASGN Inc (ASGN - Free Report) and Inovalon Holdings (INOV - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
ASGN Inc has a Zacks Rank of #2 (Buy), while Inovalon Holdings has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ASGN has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
ASGN currently has a forward P/E ratio of 23, while INOV has a forward P/E of 54.46. We also note that ASGN has a PEG ratio of 1.88. 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. INOV currently has a PEG ratio of 2.37.
Another notable valuation metric for ASGN is its P/B ratio of 3.66. 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, INOV has a P/B of 8.54.
These are just a few of the metrics contributing to ASGN's Value grade of B and INOV's Value grade of D.
ASGN stands above INOV thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ASGN is the superior value option right now.
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ASGN vs. INOV: Which Stock Should Value Investors Buy Now?
Investors with an interest in Computers - IT Services stocks have likely encountered both ASGN Inc (ASGN - Free Report) and Inovalon Holdings (INOV - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
ASGN Inc has a Zacks Rank of #2 (Buy), while Inovalon Holdings has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ASGN has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
ASGN currently has a forward P/E ratio of 23, while INOV has a forward P/E of 54.46. We also note that ASGN has a PEG ratio of 1.88. 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. INOV currently has a PEG ratio of 2.37.
Another notable valuation metric for ASGN is its P/B ratio of 3.66. 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, INOV has a P/B of 8.54.
These are just a few of the metrics contributing to ASGN's Value grade of B and INOV's Value grade of D.
ASGN stands above INOV thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ASGN is the superior value option right now.