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BGSF vs. WNS: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Business - Services sector have probably already heard of BGSF (BGSF - Free Report) and WNS Holdings Limited (WNS - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.

Right now, both BGSF and WNS Holdings Limited are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.

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 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.

BGSF currently has a forward P/E ratio of 12.77, while WNS has a forward P/E of 26.53. We also note that BGSF has a PEG ratio of 0.64. 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. WNS currently has a PEG ratio of 2.02.

Another notable valuation metric for BGSF is its P/B ratio of 2.11. 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, WNS has a P/B of 6.37.

These metrics, and several others, help BGSF earn a Value grade of A, while WNS has been given a Value grade of C.

Both BGSF and WNS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BGSF is the superior value option right now.


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