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CLGX vs. ACN: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Consulting Services sector might want to consider either CoreLogic or Accenture (ACN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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

Both CoreLogic and Accenture 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 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 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 15.02, while ACN has a forward P/E of 25.54. We also note that CLGX has a PEG ratio of 1.37. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ACN currently has a PEG ratio of 2.47.

Another notable valuation metric for CLGX is its P/B ratio of 3.49. 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, ACN has a P/B of 8.53.

These metrics, and several others, help CLGX earn a Value grade of A, while ACN has been given a Value grade of C.

Both CLGX and ACN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CLGX is the superior value option right now.


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