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BV vs. CRCM: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Consumer Services - Miscellaneous sector might want to consider either BrightView Holdings (BV - Free Report) or Care.com . 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

BrightView Holdings has a Zacks Rank of #2 (Buy), while Care.com has a Zacks Rank of #3 (Hold) right now. This means that BV'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 also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

BV currently has a forward P/E ratio of 15.02, while CRCM has a forward P/E of 20.90. We also note that BV has a PEG ratio of 0.79. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CRCM currently has a PEG ratio of 1.39.

Another notable valuation metric for BV is its P/B ratio of 1.43. 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, CRCM has a P/B of 3.06.

Based on these metrics and many more, BV holds a Value grade of A, while CRCM has a Value grade of D.

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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