Back to top

Image: Bigstock

CLGX or ACN: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors interested in Consulting Services stocks are likely familiar with CoreLogic and Accenture (ACN - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, CoreLogic is sporting a Zacks Rank of #2 (Buy), while Accenture has a Zacks Rank of #3 (Hold). This means that CLGX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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.

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.

CLGX currently has a forward P/E ratio of 14.65, while ACN has a forward P/E of 23.99. We also note that CLGX has a PEG ratio of 1.33. 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. ACN currently has a PEG ratio of 2.40.

Another notable valuation metric for CLGX is its P/B ratio of 3.62. 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, ACN has a P/B of 7.25.

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

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


See More Zacks Research for These Tickers


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


Accenture PLC (ACN) - free report >>

Published in