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HPE vs. ITI: Which Stock Should Value Investors Buy Now?
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Investors interested in Computer - Integrated Systems stocks are likely familiar with Hewlett Packard Enterprise (HPE - Free Report) and Iteris (ITI - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Hewlett Packard Enterprise is sporting a Zacks Rank of #2 (Buy), while Iteris has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HPE has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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 7.79, while ITI has a forward P/E of 20.93. We also note that HPE has a PEG ratio of 1.30. 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. ITI currently has a PEG ratio of 1.40.
Another notable valuation metric for HPE is its P/B ratio of 1.05. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ITI has a P/B of 1.69.
These are just a few of the metrics contributing to HPE's Value grade of A and ITI's Value grade of F.
HPE stands above ITI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HPE is the superior value option right now.
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HPE vs. ITI: Which Stock Should Value Investors Buy Now?
Investors interested in Computer - Integrated Systems stocks are likely familiar with Hewlett Packard Enterprise (HPE - Free Report) and Iteris (ITI - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Hewlett Packard Enterprise is sporting a Zacks Rank of #2 (Buy), while Iteris has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HPE has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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 7.79, while ITI has a forward P/E of 20.93. We also note that HPE has a PEG ratio of 1.30. 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. ITI currently has a PEG ratio of 1.40.
Another notable valuation metric for HPE is its P/B ratio of 1.05. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ITI has a P/B of 1.69.
These are just a few of the metrics contributing to HPE's Value grade of A and ITI's Value grade of F.
HPE stands above ITI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HPE is the superior value option right now.