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III vs. ACN: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Consulting Services sector have probably already heard of Information Services Group (III - Free Report) and Accenture (ACN - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Information Services Group is sporting a Zacks Rank of #2 (Buy), while Accenture has a Zacks Rank of #3 (Hold). This means that III's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
III currently has a forward P/E ratio of 21.99, while ACN has a forward P/E of 36.53. We also note that III has a PEG ratio of 1.22. 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. ACN currently has a PEG ratio of 3.65.
Another notable valuation metric for III is its P/B ratio of 4.74. 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, ACN has a P/B of 11.64.
These are just a few of the metrics contributing to III's Value grade of B and ACN's Value grade of C.
III stands above ACN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that III is the superior value option right now.
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III vs. ACN: Which Stock Is the Better Value Option?
Investors interested in stocks from the Consulting Services sector have probably already heard of Information Services Group (III - Free Report) and Accenture (ACN - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Information Services Group is sporting a Zacks Rank of #2 (Buy), while Accenture has a Zacks Rank of #3 (Hold). This means that III's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
III currently has a forward P/E ratio of 21.99, while ACN has a forward P/E of 36.53. We also note that III has a PEG ratio of 1.22. 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. ACN currently has a PEG ratio of 3.65.
Another notable valuation metric for III is its P/B ratio of 4.74. 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, ACN has a P/B of 11.64.
These are just a few of the metrics contributing to III's Value grade of B and ACN's Value grade of C.
III stands above ACN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that III is the superior value option right now.