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NVEE vs. FC: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Consulting Services sector might want to consider either NV5 Holdings (NVEE - Free Report) or Franklin Covey (FC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, NV5 Holdings is sporting a Zacks Rank of #2 (Buy), while Franklin Covey has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NVEE is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

NVEE currently has a forward P/E ratio of 25.31, while FC has a forward P/E of 75.63. We also note that NVEE has a PEG ratio of 1.42. 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. FC currently has a PEG ratio of 2.75.

Another notable valuation metric for NVEE is its P/B ratio of 2.93. 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, FC has a P/B of 8.31.

These are just a few of the metrics contributing to NVEE's Value grade of B and FC's Value grade of C.

NVEE sticks out from FC in both our Zacks Rank and Style Scores models, so value investors will likely feel that NVEE is the better option right now.


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