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AHEXY or ADP: Which Is the Better Value Stock Right Now?
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Investors with an interest in Outsourcing stocks have likely encountered both Adecco SA (AHEXY - Free Report) and Automatic Data Processing (ADP - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Adecco SA has a Zacks Rank of #2 (Buy), while Automatic Data Processing 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 AHEXY has an improving earnings outlook. 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 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.
AHEXY currently has a forward P/E ratio of 12.73, while ADP has a forward P/E of 25.74. We also note that AHEXY has a PEG ratio of 1.36. 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. ADP currently has a PEG ratio of 2.20.
Another notable valuation metric for AHEXY is its P/B ratio of 2.02. 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, ADP has a P/B of 27.90.
These metrics, and several others, help AHEXY earn a Value grade of A, while ADP has been given a Value grade of C.
AHEXY has seen stronger estimate revision activity and sports more attractive valuation metrics than ADP, so it seems like value investors will conclude that AHEXY is the superior option right now.
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AHEXY or ADP: Which Is the Better Value Stock Right Now?
Investors with an interest in Outsourcing stocks have likely encountered both Adecco SA (AHEXY - Free Report) and Automatic Data Processing (ADP - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Adecco SA has a Zacks Rank of #2 (Buy), while Automatic Data Processing 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 AHEXY has an improving earnings outlook. 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 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.
AHEXY currently has a forward P/E ratio of 12.73, while ADP has a forward P/E of 25.74. We also note that AHEXY has a PEG ratio of 1.36. 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. ADP currently has a PEG ratio of 2.20.
Another notable valuation metric for AHEXY is its P/B ratio of 2.02. 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, ADP has a P/B of 27.90.
These metrics, and several others, help AHEXY earn a Value grade of A, while ADP has been given a Value grade of C.
AHEXY has seen stronger estimate revision activity and sports more attractive valuation metrics than ADP, so it seems like value investors will conclude that AHEXY is the superior option right now.