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IKTSY or FDS: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Business - Information Services sector might want to consider either INTERTEK GP (IKTSY - Free Report) or FactSet Research (FDS - 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 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.

Currently, INTERTEK GP has a Zacks Rank of #2 (Buy), while FactSet Research has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that IKTSY likely has seen a stronger improvement to its earnings outlook than FDS has recently. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

IKTSY currently has a forward P/E ratio of 19.18, while FDS has a forward P/E of 27.43. We also note that IKTSY has a PEG ratio of 1.95. 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. FDS currently has a PEG ratio of 2.74.

Another notable valuation metric for IKTSY is its P/B ratio of 5.31. 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, FDS has a P/B of 10.54.

These are just a few of the metrics contributing to IKTSY's Value grade of B and FDS's Value grade of D.

IKTSY stands above FDS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that IKTSY is the superior value option right now.


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FactSet Research Systems Inc. (FDS) - free report >>

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