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DOX vs. EPAM: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Computers - IT Services stocks have likely encountered both Amdocs (DOX - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Amdocs is sporting a Zacks Rank of #2 (Buy), while Epam has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DOX likely has seen a stronger improvement to its earnings outlook than EPAM has recently. However, value investors will care about much more than just this.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
DOX currently has a forward P/E ratio of 15.91, while EPAM has a forward P/E of 37.10. We also note that DOX has a PEG ratio of 1.59. 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. EPAM currently has a PEG ratio of 2.16.
Another notable valuation metric for DOX is its P/B ratio of 3.04. 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 7.18.
Based on these metrics and many more, DOX holds a Value grade of B, while EPAM has a Value grade of D.
DOX has seen stronger estimate revision activity and sports more attractive valuation metrics than EPAM, so it seems like value investors will conclude that DOX is the superior option right now.
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DOX vs. EPAM: Which Stock Should Value Investors Buy Now?
Investors with an interest in Computers - IT Services stocks have likely encountered both Amdocs (DOX - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Amdocs is sporting a Zacks Rank of #2 (Buy), while Epam has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DOX likely has seen a stronger improvement to its earnings outlook than EPAM has recently. However, value investors will care about much more than just this.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
DOX currently has a forward P/E ratio of 15.91, while EPAM has a forward P/E of 37.10. We also note that DOX has a PEG ratio of 1.59. 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. EPAM currently has a PEG ratio of 2.16.
Another notable valuation metric for DOX is its P/B ratio of 3.04. 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 7.18.
Based on these metrics and many more, DOX holds a Value grade of B, while EPAM has a Value grade of D.
DOX has seen stronger estimate revision activity and sports more attractive valuation metrics than EPAM, so it seems like value investors will conclude that DOX is the superior option right now.