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CACI or FORR: Which Is the Better Value Stock Right Now?

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Investors with an interest in Computer - Services stocks have likely encountered both CACI International (CACI - Free Report) and Forrester Research (FORR - 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 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.

CACI International has a Zacks Rank of #2 (Buy), while Forrester Research has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that CACI likely has seen a stronger improvement to its earnings outlook than FORR has recently. However, value investors will care about much more than just this.

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.

CACI currently has a forward P/E ratio of 19.70, while FORR has a forward P/E of 33.93. We also note that CACI has a PEG ratio of 1.97. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FORR currently has a PEG ratio of 2.83.

Another notable valuation metric for CACI is its P/B ratio of 2.18. 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, FORR has a P/B of 5.92.

These metrics, and several others, help CACI earn a Value grade of B, while FORR has been given a Value grade of C.

CACI has seen stronger estimate revision activity and sports more attractive valuation metrics than FORR, so it seems like value investors will conclude that CACI is the superior option right now.


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