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WNS or SGSOY: Which Is the Better Value Stock Right Now?
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Investors interested in Business - Services stocks are likely familiar with WNS (Holdings) Limited (WNS - Free Report) and SGS SA (SGSOY - 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.
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.
WNS (Holdings) Limited has a Zacks Rank of #2 (Buy), while SGS SA has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that WNS is likely seeing its earnings outlook improve to a greater extent. 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
WNS currently has a forward P/E ratio of 15.91, while SGSOY has a forward P/E of 19.09. We also note that WNS has a PEG ratio of 1.49. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SGSOY currently has a PEG ratio of 3.20.
Another notable valuation metric for WNS is its P/B ratio of 3.84. 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, SGSOY has a P/B of 38.28.
These are just a few of the metrics contributing to WNS's Value grade of B and SGSOY's Value grade of C.
WNS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that WNS is likely the superior value option right now.
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WNS or SGSOY: Which Is the Better Value Stock Right Now?
Investors interested in Business - Services stocks are likely familiar with WNS (Holdings) Limited (WNS - Free Report) and SGS SA (SGSOY - 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.
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.
WNS (Holdings) Limited has a Zacks Rank of #2 (Buy), while SGS SA has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that WNS is likely seeing its earnings outlook improve to a greater extent. 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
WNS currently has a forward P/E ratio of 15.91, while SGSOY has a forward P/E of 19.09. We also note that WNS has a PEG ratio of 1.49. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SGSOY currently has a PEG ratio of 3.20.
Another notable valuation metric for WNS is its P/B ratio of 3.84. 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, SGSOY has a P/B of 38.28.
These are just a few of the metrics contributing to WNS's Value grade of B and SGSOY's Value grade of C.
WNS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that WNS is likely the superior value option right now.