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IKTSY vs. VRSK: Which Stock Is the Better Value Option?

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Investors with an interest in Business - Information Services stocks have likely encountered both INTERTEK GP (IKTSY - Free Report) and Verisk Analytics (VRSK - 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.

INTERTEK GP has a Zacks Rank of #2 (Buy), while Verisk Analytics 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 IKTSY 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 also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

IKTSY currently has a forward P/E ratio of 20.74, while VRSK has a forward P/E of 38.06. We also note that IKTSY has a PEG ratio of 3.03. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. VRSK currently has a PEG ratio of 3.07.

Another notable valuation metric for IKTSY is its P/B ratio of 5.95. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, VRSK has a P/B of 123.56.

Based on these metrics and many more, IKTSY holds a Value grade of B, while VRSK has a Value grade of D.

IKTSY sticks out from VRSK in both our Zacks Rank and Style Scores models, so value investors will likely feel that IKTSY is the better option right now.


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Verisk Analytics, Inc. (VRSK) - free report >>

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