Investors interested in Computer - Services stocks are likely familiar with LogMein and ManTech International . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Currently, both LogMein and ManTech International are holding a Zacks Rank of # 2 (Buy). 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 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.
LOGM currently has a forward P/E ratio of 15.20, while MANT has a forward P/E of 32.33. We also note that LOGM has a PEG ratio of 3.04. 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. MANT currently has a PEG ratio of 4.04.
Another notable valuation metric for LOGM is its P/B ratio of 1.40. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, MANT has a P/B of 2.14.
These metrics, and several others, help LOGM earn a Value grade of B, while MANT has been given a Value grade of C.
Both LOGM and MANT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that LOGM is the superior value option right now.