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III or EFX: Which Is the Better Value Stock Right Now?
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Investors interested in Consulting Services stocks are likely familiar with Information Services Group (III - Free Report) and Equifax (EFX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Right now, Information Services Group is sporting a Zacks Rank of #2 (Buy), while Equifax has a Zacks Rank of #3 (Hold). This means that III's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.
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.
III currently has a forward P/E ratio of 13.16, while EFX has a forward P/E of 22.45. We also note that III has a PEG ratio of 0.82. 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. EFX currently has a PEG ratio of 1.54.
Another notable valuation metric for III is its P/B ratio of 2.47. 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, EFX has a P/B of 5.13.
These metrics, and several others, help III earn a Value grade of A, while EFX has been given a Value grade of C.
III sticks out from EFX in both our Zacks Rank and Style Scores models, so value investors will likely feel that III is the better option right now.
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III or EFX: Which Is the Better Value Stock Right Now?
Investors interested in Consulting Services stocks are likely familiar with Information Services Group (III - Free Report) and Equifax (EFX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Right now, Information Services Group is sporting a Zacks Rank of #2 (Buy), while Equifax has a Zacks Rank of #3 (Hold). This means that III's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.
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.
III currently has a forward P/E ratio of 13.16, while EFX has a forward P/E of 22.45. We also note that III has a PEG ratio of 0.82. 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. EFX currently has a PEG ratio of 1.54.
Another notable valuation metric for III is its P/B ratio of 2.47. 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, EFX has a P/B of 5.13.
These metrics, and several others, help III earn a Value grade of A, while EFX has been given a Value grade of C.
III sticks out from EFX in both our Zacks Rank and Style Scores models, so value investors will likely feel that III is the better option right now.