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EXLS or NTNX: Which Is the Better Value Stock Right Now?
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Investors with an interest in Computers - IT Services stocks have likely encountered both ExlService Holdings (EXLS - Free Report) and Nutanix (NTNX - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, ExlService Holdings has a Zacks Rank of #2 (Buy), while Nutanix has a Zacks Rank of #3 (Hold). This means that EXLS'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 also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
EXLS currently has a forward P/E ratio of 16.11, while NTNX has a forward P/E of 29.42. We also note that EXLS has a PEG ratio of 1.18. 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. NTNX currently has a PEG ratio of 1.70.
Another notable valuation metric for EXLS is its P/B ratio of 6.46. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NTNX has a P/B of 25.72.
Based on these metrics and many more, EXLS holds a Value grade of B, while NTNX has a Value grade of F.
EXLS 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 EXLS is likely the superior value option right now.
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EXLS or NTNX: Which Is the Better Value Stock Right Now?
Investors with an interest in Computers - IT Services stocks have likely encountered both ExlService Holdings (EXLS - Free Report) and Nutanix (NTNX - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, ExlService Holdings has a Zacks Rank of #2 (Buy), while Nutanix has a Zacks Rank of #3 (Hold). This means that EXLS'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 also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
EXLS currently has a forward P/E ratio of 16.11, while NTNX has a forward P/E of 29.42. We also note that EXLS has a PEG ratio of 1.18. 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. NTNX currently has a PEG ratio of 1.70.
Another notable valuation metric for EXLS is its P/B ratio of 6.46. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NTNX has a P/B of 25.72.
Based on these metrics and many more, EXLS holds a Value grade of B, while NTNX has a Value grade of F.
EXLS 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 EXLS is likely the superior value option right now.