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UTI or PWSC: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Schools sector might want to consider either Universal Technical Institute (UTI - Free Report) or PowerSchool Holdings (PWSC - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Universal Technical Institute and PowerSchool Holdings are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.
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.
UTI currently has a forward P/E ratio of 22.13, while PWSC has a forward P/E of 22.85. We also note that UTI has a PEG ratio of 1.48. 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. PWSC currently has a PEG ratio of 2.07.
Another notable valuation metric for UTI is its P/B ratio of 1.56. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PWSC has a P/B of 2.04.
Based on these metrics and many more, UTI holds a Value grade of B, while PWSC has a Value grade of F.
Both UTI and PWSC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that UTI is the superior value option right now.
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UTI or PWSC: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Schools sector might want to consider either Universal Technical Institute (UTI - Free Report) or PowerSchool Holdings (PWSC - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Universal Technical Institute and PowerSchool Holdings are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.
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.
UTI currently has a forward P/E ratio of 22.13, while PWSC has a forward P/E of 22.85. We also note that UTI has a PEG ratio of 1.48. 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. PWSC currently has a PEG ratio of 2.07.
Another notable valuation metric for UTI is its P/B ratio of 1.56. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PWSC has a P/B of 2.04.
Based on these metrics and many more, UTI holds a Value grade of B, while PWSC has a Value grade of F.
Both UTI and PWSC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that UTI is the superior value option right now.