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ASGN vs. DT: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Computers - IT Services sector might want to consider either ASGN Inc (ASGN - Free Report) or Dynatrace (DT - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, ASGN Inc is sporting a Zacks Rank of #2 (Buy), while Dynatrace 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 ASGN 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 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.
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.
ASGN currently has a forward P/E ratio of 13.23, while DT has a forward P/E of 43.68. We also note that ASGN has a PEG ratio of 0.97. 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. DT currently has a PEG ratio of 2.28.
Another notable valuation metric for ASGN is its P/B ratio of 2.44. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DT has a P/B of 7.09.
These are just a few of the metrics contributing to ASGN's Value grade of B and DT's Value grade of D.
ASGN sticks out from DT in both our Zacks Rank and Style Scores models, so value investors will likely feel that ASGN is the better option right now.
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ASGN vs. DT: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Computers - IT Services sector might want to consider either ASGN Inc (ASGN - Free Report) or Dynatrace (DT - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, ASGN Inc is sporting a Zacks Rank of #2 (Buy), while Dynatrace 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 ASGN 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 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.
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.
ASGN currently has a forward P/E ratio of 13.23, while DT has a forward P/E of 43.68. We also note that ASGN has a PEG ratio of 0.97. 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. DT currently has a PEG ratio of 2.28.
Another notable valuation metric for ASGN is its P/B ratio of 2.44. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DT has a P/B of 7.09.
These are just a few of the metrics contributing to ASGN's Value grade of B and DT's Value grade of D.
ASGN sticks out from DT in both our Zacks Rank and Style Scores models, so value investors will likely feel that ASGN is the better option right now.