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GPX or STRA: Which Is the Better Value Stock Right Now?
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Investors with an interest in Schools stocks have likely encountered both GP Strategies and Strategic Education (STRA - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
GP Strategies and Strategic Education are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GPX is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
GPX currently has a forward P/E ratio of 9.73, while STRA has a forward P/E of 19.93. We also note that GPX has a PEG ratio of 0.65. 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. STRA currently has a PEG ratio of 1.33.
Another notable valuation metric for GPX is its P/B ratio of 0.96. 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, STRA has a P/B of 2.24.
These metrics, and several others, help GPX earn a Value grade of A, while STRA has been given a Value grade of D.
GPX stands above STRA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GPX is the superior value option right now.
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GPX or STRA: Which Is the Better Value Stock Right Now?
Investors with an interest in Schools stocks have likely encountered both GP Strategies and Strategic Education (STRA - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
GP Strategies and Strategic Education are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GPX is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
GPX currently has a forward P/E ratio of 9.73, while STRA has a forward P/E of 19.93. We also note that GPX has a PEG ratio of 0.65. 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. STRA currently has a PEG ratio of 1.33.
Another notable valuation metric for GPX is its P/B ratio of 0.96. 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, STRA has a P/B of 2.24.
These metrics, and several others, help GPX earn a Value grade of A, while STRA has been given a Value grade of D.
GPX stands above STRA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GPX is the superior value option right now.