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ASGN vs. WIX: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Computers - IT Services sector have probably already heard of ASGN Inc (ASGN - Free Report) and Wix.com (WIX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

ASGN Inc has a Zacks Rank of #1 (Strong Buy), while Wix.com has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ASGN is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

ASGN currently has a forward P/E ratio of 16.58, while WIX has a forward P/E of 254.37. We also note that ASGN has a PEG ratio of 2.98. 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. WIX currently has a PEG ratio of 4.84.

Another notable valuation metric for ASGN is its P/B ratio of 2.40. 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, WIX has a P/B of 55.99.

These are just a few of the metrics contributing to ASGN's Value grade of B and WIX's Value grade of F.

ASGN stands above WIX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ASGN is the superior value option right now.


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