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PRDO vs. PWSC: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Schools sector have probably already heard of Perdoceo Education (PRDO - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Perdoceo Education is sporting a Zacks Rank of #2 (Buy), while PowerSchool Holdings has a Zacks Rank of #3 (Hold). This means that PRDO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PRDO currently has a forward P/E ratio of 7.49, while PWSC has a forward P/E of 16.34. We also note that PRDO has a PEG ratio of 0.50. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PWSC currently has a PEG ratio of 2.03.
Another notable valuation metric for PRDO is its P/B ratio of 1.05. 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, PWSC has a P/B of 1.43.
These metrics, and several others, help PRDO earn a Value grade of A, while PWSC has been given a Value grade of D.
PRDO sticks out from PWSC in both our Zacks Rank and Style Scores models, so value investors will likely feel that PRDO is the better option right now.
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PRDO vs. PWSC: Which Stock Is the Better Value Option?
Investors interested in stocks from the Schools sector have probably already heard of Perdoceo Education (PRDO - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Perdoceo Education is sporting a Zacks Rank of #2 (Buy), while PowerSchool Holdings has a Zacks Rank of #3 (Hold). This means that PRDO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PRDO currently has a forward P/E ratio of 7.49, while PWSC has a forward P/E of 16.34. We also note that PRDO has a PEG ratio of 0.50. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PWSC currently has a PEG ratio of 2.03.
Another notable valuation metric for PRDO is its P/B ratio of 1.05. 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, PWSC has a P/B of 1.43.
These metrics, and several others, help PRDO earn a Value grade of A, while PWSC has been given a Value grade of D.
PRDO sticks out from PWSC in both our Zacks Rank and Style Scores models, so value investors will likely feel that PRDO is the better option right now.