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LOGM vs. MANT: Which Stock Is the Better Value Option?

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Investors with an interest in Computer - Services stocks have likely encountered both LogMein and ManTech International . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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.

LogMein and ManTech International are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that LOGM is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

LOGM currently has a forward P/E ratio of 13.35, while MANT has a forward P/E of 29.17. We also note that LOGM has a PEG ratio of 2.67. 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. MANT currently has a PEG ratio of 3.65.

Another notable valuation metric for LOGM is its P/B ratio of 1.20. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MANT has a P/B of 1.87.

Based on these metrics and many more, LOGM holds a Value grade of B, while MANT has a Value grade of C.

LOGM stands above MANT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LOGM is the superior value option right now.

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