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HSON or EXLS: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Outsourcing sector have probably already heard of Hudson Global (HSON - Free Report) and ExlService Holdings (EXLS - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Hudson Global has a Zacks Rank of #2 (Buy), while ExlService Holdings has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HSON is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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 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.
HSON currently has a forward P/E ratio of 7.90, while EXLS has a forward P/E of 26.04. We also note that HSON has a PEG ratio of 0.40. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EXLS currently has a PEG ratio of 2.
Another notable valuation metric for HSON is its P/B ratio of 2.04. 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, EXLS has a P/B of 6.89.
These metrics, and several others, help HSON earn a Value grade of A, while EXLS has been given a Value grade of C.
HSON has seen stronger estimate revision activity and sports more attractive valuation metrics than EXLS, so it seems like value investors will conclude that HSON is the superior option right now.
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HSON or EXLS: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Outsourcing sector have probably already heard of Hudson Global (HSON - Free Report) and ExlService Holdings (EXLS - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Hudson Global has a Zacks Rank of #2 (Buy), while ExlService Holdings has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HSON is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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 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.
HSON currently has a forward P/E ratio of 7.90, while EXLS has a forward P/E of 26.04. We also note that HSON has a PEG ratio of 0.40. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EXLS currently has a PEG ratio of 2.
Another notable valuation metric for HSON is its P/B ratio of 2.04. 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, EXLS has a P/B of 6.89.
These metrics, and several others, help HSON earn a Value grade of A, while EXLS has been given a Value grade of C.
HSON has seen stronger estimate revision activity and sports more attractive valuation metrics than EXLS, so it seems like value investors will conclude that HSON is the superior option right now.