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CACI or GIB: Which Is the Better Value Stock Right Now?
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Investors interested in Computer - Services stocks are likely familiar with CACI International (CACI - Free Report) and CGI Group (GIB - Free Report) . 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.
Both CACI International and CGI Group have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
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 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.
CACI currently has a forward P/E ratio of 19.24, while GIB has a forward P/E of 20.71. We also note that CACI has a PEG ratio of 1.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GIB currently has a PEG ratio of 2.21.
Another notable valuation metric for CACI is its P/B ratio of 2.43. 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, GIB has a P/B of 4.25.
These metrics, and several others, help CACI earn a Value grade of B, while GIB has been given a Value grade of C.
Both CACI and GIB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CACI is the superior value option right now.
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CACI or GIB: Which Is the Better Value Stock Right Now?
Investors interested in Computer - Services stocks are likely familiar with CACI International (CACI - Free Report) and CGI Group (GIB - Free Report) . 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.
Both CACI International and CGI Group have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
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 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.
CACI currently has a forward P/E ratio of 19.24, while GIB has a forward P/E of 20.71. We also note that CACI has a PEG ratio of 1.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GIB currently has a PEG ratio of 2.21.
Another notable valuation metric for CACI is its P/B ratio of 2.43. 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, GIB has a P/B of 4.25.
These metrics, and several others, help CACI earn a Value grade of B, while GIB has been given a Value grade of C.
Both CACI and GIB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CACI is the superior value option right now.