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ASGN vs. WIX: Which Stock Is the Better Value Option?

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Investors with an interest in Computers - IT Services stocks have likely encountered both ASGN Inc (ASGN - Free Report) and Wix.com (WIX - Free Report) . 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.

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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, ASGN Inc has a Zacks Rank of #2 (Buy), while Wix.com has a Zacks Rank of #3 (Hold). This means that ASGN'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 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.

ASGN currently has a forward P/E ratio of 15.14, while WIX has a forward P/E of 112.83. We also note that ASGN has a PEG ratio of 1.67. 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. WIX currently has a PEG ratio of 4.30.

Another notable valuation metric for ASGN is its P/B ratio of 2.75. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, WIX has a P/B of 29.86.

These metrics, and several others, help ASGN earn a Value grade of A, while WIX has been given a Value grade of F.

ASGN sticks out from WIX in both our Zacks Rank and Style Scores models, so value investors will likely feel that ASGN is the better option right now.


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