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DOX vs. EPAM: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Computers - IT Services sector might want to consider either Amdocs (DOX - Free Report) or Epam (EPAM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.
Right now, both Amdocs and Epam are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.
DOX currently has a forward P/E ratio of 13.67, while EPAM has a forward P/E of 36.50. We also note that DOX has a PEG ratio of 1.19. 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. EPAM currently has a PEG ratio of 1.85.
Another notable valuation metric for DOX is its P/B ratio of 2.97. 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, EPAM has a P/B of 7.95.
Based on these metrics and many more, DOX holds a Value grade of B, while EPAM has a Value grade of C.
Both DOX and EPAM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DOX is the superior value option right now.
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DOX vs. EPAM: Which Stock Is the Better Value Option?
Investors looking for stocks in the Computers - IT Services sector might want to consider either Amdocs (DOX - Free Report) or Epam (EPAM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.
Right now, both Amdocs and Epam are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.
DOX currently has a forward P/E ratio of 13.67, while EPAM has a forward P/E of 36.50. We also note that DOX has a PEG ratio of 1.19. 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. EPAM currently has a PEG ratio of 1.85.
Another notable valuation metric for DOX is its P/B ratio of 2.97. 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, EPAM has a P/B of 7.95.
Based on these metrics and many more, DOX holds a Value grade of B, while EPAM has a Value grade of C.
Both DOX and EPAM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DOX is the superior value option right now.