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SNX or EPAM: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Computers - IT Services sector might want to consider either TD SYNNEX (SNX - Free Report) or Epam (EPAM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.

Both TD SYNNEX and Epam have a Zacks Rank of #2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.

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.

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.

SNX currently has a forward P/E ratio of 10.84, while EPAM has a forward P/E of 18.37. We also note that SNX has a PEG ratio of 1.02. 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. EPAM currently has a PEG ratio of 2.25.

Another notable valuation metric for SNX is its P/B ratio of 1.5. 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, EPAM has a P/B of 3.13.

Based on these metrics and many more, SNX holds a Value grade of A, while EPAM has a Value grade of C.

Both SNX and EPAM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SNX is the superior value option right now.


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