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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 presents investors with the better value opportunity right now? 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, Perdoceo Education has a Zacks Rank of #1 (Strong Buy), while PowerSchool Holdings has 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 PRDO has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
PRDO currently has a forward P/E ratio of 7.85, while PWSC has a forward P/E of 25.57. We also note that PRDO has a PEG ratio of 0.52. 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 2.02.
Another notable valuation metric for PRDO is its P/B ratio of 1.26. 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 2.64.
These metrics, and several others, help PRDO earn a Value grade of A, while PWSC has been given 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 presents investors with the better value opportunity right now? 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, Perdoceo Education has a Zacks Rank of #1 (Strong Buy), while PowerSchool Holdings has 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 PRDO has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
PRDO currently has a forward P/E ratio of 7.85, while PWSC has a forward P/E of 25.57. We also note that PRDO has a PEG ratio of 0.52. 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 2.02.
Another notable valuation metric for PRDO is its P/B ratio of 1.26. 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 2.64.
These metrics, and several others, help PRDO earn a Value grade of A, while PWSC has been given 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.