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ASGN vs. EPAM: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Computers - IT Services sector have probably already heard of ASGN Inc (ASGN - Free Report) and Epam (EPAM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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, ASGN Inc is sporting a Zacks Rank of #2 (Buy), while Epam has a Zacks Rank of #4 (Sell). This means that ASGN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ASGN currently has a forward P/E ratio of 17.56, while EPAM has a forward P/E of 31.21. We also note that ASGN has a PEG ratio of 1.14. 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. EPAM currently has a PEG ratio of 5.80.
Another notable valuation metric for ASGN is its P/B ratio of 3.12. 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, EPAM has a P/B of 6.02.
Based on these metrics and many more, ASGN holds a Value grade of B, while EPAM has a Value grade of D.
ASGN stands above EPAM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ASGN is the superior value option right now.
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ASGN vs. EPAM: Which Stock Is the Better Value Option?
Investors interested in stocks from the Computers - IT Services sector have probably already heard of ASGN Inc (ASGN - Free Report) and Epam (EPAM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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, ASGN Inc is sporting a Zacks Rank of #2 (Buy), while Epam has a Zacks Rank of #4 (Sell). This means that ASGN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ASGN currently has a forward P/E ratio of 17.56, while EPAM has a forward P/E of 31.21. We also note that ASGN has a PEG ratio of 1.14. 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. EPAM currently has a PEG ratio of 5.80.
Another notable valuation metric for ASGN is its P/B ratio of 3.12. 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, EPAM has a P/B of 6.02.
Based on these metrics and many more, ASGN holds a Value grade of B, while EPAM has a Value grade of D.
ASGN stands above EPAM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ASGN is the superior value option right now.