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LINC vs. PWSC: Which Stock Is the Better Value Option?
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Investors with an interest in Schools stocks have likely encountered both Lincoln Educational Services Corporation (LINC - Free Report) and PowerSchool Holdings (PWSC - 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.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Lincoln Educational Services Corporation is sporting a Zacks Rank of #1 (Strong Buy), while PowerSchool Holdings has a Zacks Rank of #2 (Buy). This means that LINC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
LINC currently has a forward P/E ratio of 10.87, while PWSC has a forward P/E of 26.83. We also note that LINC has a PEG ratio of 0.81. 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. PWSC currently has a PEG ratio of 7.78.
Another notable valuation metric for LINC is its P/B ratio of 1.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PWSC has a P/B of 1.85.
Based on these metrics and many more, LINC holds a Value grade of A, while PWSC has a Value grade of D.
LINC stands above PWSC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LINC is the superior value option right now.
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LINC vs. PWSC: Which Stock Is the Better Value Option?
Investors with an interest in Schools stocks have likely encountered both Lincoln Educational Services Corporation (LINC - Free Report) and PowerSchool Holdings (PWSC - 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.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Lincoln Educational Services Corporation is sporting a Zacks Rank of #1 (Strong Buy), while PowerSchool Holdings has a Zacks Rank of #2 (Buy). This means that LINC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
LINC currently has a forward P/E ratio of 10.87, while PWSC has a forward P/E of 26.83. We also note that LINC has a PEG ratio of 0.81. 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. PWSC currently has a PEG ratio of 7.78.
Another notable valuation metric for LINC is its P/B ratio of 1.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PWSC has a P/B of 1.85.
Based on these metrics and many more, LINC holds a Value grade of A, while PWSC has a Value grade of D.
LINC stands above PWSC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LINC is the superior value option right now.