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

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Investors with an interest in Consulting Services stocks have likely encountered both CoreLogic and Franklin Covey (FC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

CoreLogic and Franklin Covey are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CLGX has 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.

CLGX currently has a forward P/E ratio of 9.80, while FC has a forward P/E of 42.83. We also note that CLGX has a PEG ratio of 0.89. 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. FC currently has a PEG ratio of 2.64.

Another notable valuation metric for CLGX is its P/B ratio of 2.42. 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, FC has a P/B of 2.58.

Based on these metrics and many more, CLGX holds a Value grade of B, while FC has a Value grade of C.

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


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