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CNXC or TRI: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Business - Services sector might want to consider either Concentrix Corporation (CNXC - Free Report) or Thomson Reuters (TRI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 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.
Concentrix Corporation has a Zacks Rank of #2 (Buy), while Thomson Reuters 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 CNXC is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CNXC currently has a forward P/E ratio of 4.14, while TRI has a forward P/E of 44.92. We also note that CNXC has a PEG ratio of 0.57. 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. TRI currently has a PEG ratio of 5.61.
Another notable valuation metric for CNXC is its P/B ratio of 0.72. 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, TRI has a P/B of 6.18.
Based on these metrics and many more, CNXC holds a Value grade of A, while TRI has a Value grade of F.
CNXC has seen stronger estimate revision activity and sports more attractive valuation metrics than TRI, so it seems like value investors will conclude that CNXC is the superior option right now.
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CNXC or TRI: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Business - Services sector might want to consider either Concentrix Corporation (CNXC - Free Report) or Thomson Reuters (TRI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 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.
Concentrix Corporation has a Zacks Rank of #2 (Buy), while Thomson Reuters 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 CNXC is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CNXC currently has a forward P/E ratio of 4.14, while TRI has a forward P/E of 44.92. We also note that CNXC has a PEG ratio of 0.57. 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. TRI currently has a PEG ratio of 5.61.
Another notable valuation metric for CNXC is its P/B ratio of 0.72. 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, TRI has a P/B of 6.18.
Based on these metrics and many more, CNXC holds a Value grade of A, while TRI has a Value grade of F.
CNXC has seen stronger estimate revision activity and sports more attractive valuation metrics than TRI, so it seems like value investors will conclude that CNXC is the superior option right now.