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BV vs. CRCM: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Consumer Services - Miscellaneous sector have probably already heard of BrightView Holdings (BV - Free Report) and Care.com . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

BrightView Holdings and Care.com are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that BV likely has seen a stronger improvement to its earnings outlook than CRCM has recently. 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

BV currently has a forward P/E ratio of 16.37, while CRCM has a forward P/E of 19.17. We also note that BV has a PEG ratio of 0.86. 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. CRCM currently has a PEG ratio of 1.28.

Another notable valuation metric for BV is its P/B ratio of 1.55. 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, CRCM has a P/B of 2.81.

These metrics, and several others, help BV earn a Value grade of A, while CRCM has been given a Value grade of C.

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


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