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BCOR or TRI: Which Is the Better Value Stock Right Now?

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Investors with an interest in Technology Services stocks have likely encountered both Blucora and Thomson Reuters (TRI - 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.

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 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.

Right now, both Blucora and Thomson Reuters are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

BCOR currently has a forward P/E ratio of 4.70, while TRI has a forward P/E of 31.84. We also note that BCOR has a PEG ratio of 0.23. 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. TRI currently has a PEG ratio of 2.54.

Another notable valuation metric for BCOR is its P/B ratio of 0.83. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TRI has a P/B of 3.14.

Based on these metrics and many more, BCOR holds a Value grade of B, while TRI has a Value grade of D.

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


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