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CACI vs. FORR: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Computer - Services sector might want to consider either CACI International (CACI - Free Report) or Forrester Research (FORR - 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.

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.

Currently, CACI International has a Zacks Rank of #2 (Buy), while Forrester Research has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CACI likely has seen a stronger improvement to its earnings outlook than FORR has recently. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

CACI currently has a forward P/E ratio of 20.52, while FORR has a forward P/E of 21.97. We also note that CACI has a PEG ratio of 1.67. 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. FORR currently has a PEG ratio of 1.83.

Another notable valuation metric for CACI is its P/B ratio of 2.46. 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, FORR has a P/B of 4.19.

These are just a few of the metrics contributing to CACI's Value grade of A and FORR's Value grade of D.

CACI has seen stronger estimate revision activity and sports more attractive valuation metrics than FORR, so it seems like value investors will conclude that CACI is the superior option right now.


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