We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AFYA vs. PWSC: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in Schools stocks are likely familiar with Afya (AFYA - Free Report) and PowerSchool Holdings (PWSC - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Afya has a Zacks Rank of #2 (Buy), while PowerSchool Holdings has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AFYA has an improving earnings outlook. But this is only part of the picture for value investors.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
AFYA currently has a forward P/E ratio of 10.66, while PWSC has a forward P/E of 26.33. We also note that AFYA has a PEG ratio of 0.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PWSC currently has a PEG ratio of 2.08.
Another notable valuation metric for AFYA is its P/B ratio of 2.09. 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, PWSC has a P/B of 2.61.
Based on these metrics and many more, AFYA holds a Value grade of A, while PWSC has a Value grade of D.
AFYA stands above PWSC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AFYA is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AFYA vs. PWSC: Which Stock Is the Better Value Option?
Investors interested in Schools stocks are likely familiar with Afya (AFYA - Free Report) and PowerSchool Holdings (PWSC - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Afya has a Zacks Rank of #2 (Buy), while PowerSchool Holdings has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AFYA has an improving earnings outlook. But this is only part of the picture for value investors.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
AFYA currently has a forward P/E ratio of 10.66, while PWSC has a forward P/E of 26.33. We also note that AFYA has a PEG ratio of 0.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PWSC currently has a PEG ratio of 2.08.
Another notable valuation metric for AFYA is its P/B ratio of 2.09. 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, PWSC has a P/B of 2.61.
Based on these metrics and many more, AFYA holds a Value grade of A, while PWSC has a Value grade of D.
AFYA stands above PWSC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AFYA is the superior value option right now.