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PRDO vs. PWSC: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Schools sector might want to consider either Perdoceo Education (PRDO - Free Report) or PowerSchool Holdings (PWSC - 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Perdoceo Education and PowerSchool Holdings are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that PRDO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PRDO currently has a forward P/E ratio of 8.74, while PWSC has a forward P/E of 27.36. We also note that PRDO has a PEG ratio of 0.58. 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. PWSC currently has a PEG ratio of 2.48.
Another notable valuation metric for PRDO is its P/B ratio of 1.33. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PWSC has a P/B of 2.45.
Based on these metrics and many more, PRDO holds a Value grade of A, while PWSC has a Value grade of D.
PRDO stands above PWSC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PRDO is the superior value option right now.
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PRDO vs. PWSC: Which Stock Is the Better Value Option?
Investors looking for stocks in the Schools sector might want to consider either Perdoceo Education (PRDO - Free Report) or PowerSchool Holdings (PWSC - 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Perdoceo Education and PowerSchool Holdings are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that PRDO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PRDO currently has a forward P/E ratio of 8.74, while PWSC has a forward P/E of 27.36. We also note that PRDO has a PEG ratio of 0.58. 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. PWSC currently has a PEG ratio of 2.48.
Another notable valuation metric for PRDO is its P/B ratio of 1.33. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PWSC has a P/B of 2.45.
Based on these metrics and many more, PRDO holds a Value grade of A, while PWSC has a Value grade of D.
PRDO stands above PWSC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PRDO is the superior value option right now.