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ATGE vs. STRA: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Schools sector might want to consider either Adtalem Global Education (ATGE - Free Report) or Strategic Education (STRA - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Currently, Adtalem Global Education has a Zacks Rank of #2 (Buy), while Strategic Education has a Zacks Rank of #3 (Hold). This means that ATGE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
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.
ATGE currently has a forward P/E ratio of 12.78, while STRA has a forward P/E of 20.05. We also note that ATGE has a PEG ratio of 1.02. 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. STRA currently has a PEG ratio of 1.34.
Another notable valuation metric for ATGE is its P/B ratio of 1.34. 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 2.27.
These metrics, and several others, help ATGE earn a Value grade of A, while STRA has been given a Value grade of D.
ATGE is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ATGE is likely the superior value option right now.
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ATGE vs. STRA: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Schools sector might want to consider either Adtalem Global Education (ATGE - Free Report) or Strategic Education (STRA - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Currently, Adtalem Global Education has a Zacks Rank of #2 (Buy), while Strategic Education has a Zacks Rank of #3 (Hold). This means that ATGE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
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.
ATGE currently has a forward P/E ratio of 12.78, while STRA has a forward P/E of 20.05. We also note that ATGE has a PEG ratio of 1.02. 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. STRA currently has a PEG ratio of 1.34.
Another notable valuation metric for ATGE is its P/B ratio of 1.34. 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 2.27.
These metrics, and several others, help ATGE earn a Value grade of A, while STRA has been given a Value grade of D.
ATGE is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ATGE is likely the superior value option right now.