Back to top

Image: Bigstock

CLGX vs. FC: Which Stock Should Value Investors Buy Now?

Read MoreHide Full Article

Investors with an interest in Consulting Services stocks have likely encountered both CoreLogic and Franklin Covey (FC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, CoreLogic has a Zacks Rank of #2 (Buy), while Franklin Covey has a Zacks Rank of #3 (Hold). 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. But this is just one piece of the puzzle 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 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 11.62, while FC has a forward P/E of 167.11. We also note that CLGX has a PEG ratio of 1.06. 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. FC currently has a PEG ratio of 10.28.

Another notable valuation metric for CLGX is its P/B ratio of 2.87. 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, FC has a P/B of 3.15.

These metrics, and several others, help CLGX earn a Value grade of B, while FC has been given a Value grade of D.

CLGX stands above FC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CLGX is the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Franklin Covey Company (FC) - free report >>

Published in