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

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Investors with an interest in Consulting Services stocks have likely encountered both 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.

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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, CoreLogic is sporting a Zacks Rank of #1 (Strong Buy), while Accenture has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CLGX is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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 17.36, while ACN has a forward P/E of 23.38. We also note that CLGX has a PEG ratio of 1.58. 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. ACN currently has a PEG ratio of 2.26.

Another notable valuation metric for CLGX is its P/B ratio of 3.85. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ACN has a P/B of 8.26.

Based on these metrics and many more, CLGX holds a Value grade of B, while ACN has a Value grade of D.

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


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