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VRTU or PRFT: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Computer - Services sector might want to consider either Virtusa or Perficient (PRFT - 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, Virtusa is sporting a Zacks Rank of #2 (Buy), while Perficient has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that VRTU likely has seen a stronger improvement to its earnings outlook than PRFT 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.
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.
VRTU currently has a forward P/E ratio of 18.87, while PRFT has a forward P/E of 21.71. We also note that VRTU has a PEG ratio of 1.35. 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. PRFT currently has a PEG ratio of 1.81.
Another notable valuation metric for VRTU is its P/B ratio of 2.14. 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, PRFT has a P/B of 2.88.
Based on these metrics and many more, VRTU holds a Value grade of B, while PRFT has a Value grade of D.
VRTU stands above PRFT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VRTU is the superior value option right now.
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VRTU or PRFT: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Computer - Services sector might want to consider either Virtusa or Perficient (PRFT - 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, Virtusa is sporting a Zacks Rank of #2 (Buy), while Perficient has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that VRTU likely has seen a stronger improvement to its earnings outlook than PRFT 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.
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.
VRTU currently has a forward P/E ratio of 18.87, while PRFT has a forward P/E of 21.71. We also note that VRTU has a PEG ratio of 1.35. 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. PRFT currently has a PEG ratio of 1.81.
Another notable valuation metric for VRTU is its P/B ratio of 2.14. 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, PRFT has a P/B of 2.88.
Based on these metrics and many more, VRTU holds a Value grade of B, while PRFT has a Value grade of D.
VRTU stands above PRFT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VRTU is the superior value option right now.