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CLGX or ACN: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Consulting Services sector have probably already heard of CoreLogic and Accenture (ACN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

CoreLogic has a Zacks Rank of #1 (Strong Buy), while Accenture has a Zacks Rank of #2 (Buy) right now. This means that CLGX'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.

CLGX currently has a forward P/E ratio of 18.07, while ACN has a forward P/E of 26.93. We also note that CLGX has a PEG ratio of 1.64. 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. ACN currently has a PEG ratio of 2.61.

Another notable valuation metric for CLGX is its P/B ratio of 3.90. 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, ACN has a P/B of 9.38.

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

CLGX sticks out from ACN in both our Zacks Rank and Style Scores models, so value investors will likely feel that CLGX is the better option right now.


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