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ONT vs. EXPGY: Which Stock Is the Better Value Option?

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Investors with an interest in Business - Information Services stocks have likely encountered both Onterris (ONT - Free Report) and Experian PLC (EXPGY - 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

Currently, Onterris has a Zacks Rank of #2 (Buy), while Experian PLC has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ONT likely has seen a stronger improvement to its earnings outlook than EXPGY has recently. But this is just one factor that value investors are interested in.

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.

ONT currently has a forward P/E ratio of 9.71, while EXPGY has a forward P/E of 16.44. We also note that ONT has a PEG ratio of 0.74. 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. EXPGY currently has a PEG ratio of 1.25.

Another notable valuation metric for ONT is its P/B ratio of 1.22. 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, EXPGY has a P/B of 5.35.

These are just a few of the metrics contributing to ONT's Value grade of A and EXPGY's Value grade of C.

ONT 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 ONT is likely the superior value option right now.

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