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HPE vs. ITI: Which Stock Is the Better Value Option?
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Investors with an interest in Computer - Integrated Systems stocks have likely encountered both Hewlett Packard Enterprise (HPE - Free Report) and Iteris (ITI - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Hewlett Packard Enterprise has a Zacks Rank of #1 (Strong Buy), while Iteris has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that HPE likely has seen a stronger improvement to its earnings outlook than ITI has recently. However, value investors will care about much more than just this.
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.
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.
HPE currently has a forward P/E ratio of 7.16, while ITI has a forward P/E of 24.33. We also note that HPE has a PEG ratio of 0.78. 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. ITI currently has a PEG ratio of 1.62.
Another notable valuation metric for HPE is its P/B ratio of 1.11. 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, ITI has a P/B of 2.69.
Based on these metrics and many more, HPE holds a Value grade of A, while ITI has a Value grade of C.
HPE sticks out from ITI in both our Zacks Rank and Style Scores models, so value investors will likely feel that HPE is the better option right now.
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HPE vs. ITI: Which Stock Is the Better Value Option?
Investors with an interest in Computer - Integrated Systems stocks have likely encountered both Hewlett Packard Enterprise (HPE - Free Report) and Iteris (ITI - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Hewlett Packard Enterprise has a Zacks Rank of #1 (Strong Buy), while Iteris has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that HPE likely has seen a stronger improvement to its earnings outlook than ITI has recently. However, value investors will care about much more than just this.
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.
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.
HPE currently has a forward P/E ratio of 7.16, while ITI has a forward P/E of 24.33. We also note that HPE has a PEG ratio of 0.78. 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. ITI currently has a PEG ratio of 1.62.
Another notable valuation metric for HPE is its P/B ratio of 1.11. 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, ITI has a P/B of 2.69.
Based on these metrics and many more, HPE holds a Value grade of A, while ITI has a Value grade of C.
HPE sticks out from ITI in both our Zacks Rank and Style Scores models, so value investors will likely feel that HPE is the better option right now.