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HURN vs. ACN: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Consulting Services sector have probably already heard of Huron Consulting (HURN - Free Report) and Accenture (ACN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Huron Consulting is sporting a Zacks Rank of #2 (Buy), while Accenture has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HURN likely has seen a stronger improvement to its earnings outlook than ACN has recently. However, value investors will care about much more than just this.

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.

HURN currently has a forward P/E ratio of 16.81, while ACN has a forward P/E of 22.18. We also note that HURN has a PEG ratio of 1.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ACN currently has a PEG ratio of 2.22.

Another notable valuation metric for HURN is its P/B ratio of 1.84. 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, ACN has a P/B of 6.71.

These metrics, and several others, help HURN earn a Value grade of B, while ACN has been given a Value grade of C.

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


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