雅虎香港財經 CRAI vs. IT: Which Stock Is the Better Value Option?
Investors with an interest in Consulting Services stocks have likely encountered both CRA International (CRAI) and Gartner (IT). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, CRA International is sporting a Zacks Rank of #1 (Strong Buy), while Gartner has a Zacks Rank of #3 (Hold). This means that CRAI'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 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.
CRAI currently has a forward P/E ratio of 26.11, while IT has a forward P/E of 36.28. We also note that CRAI has a PEG ratio of 1.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. IT currently has a PEG ratio of 3.36.
Another notable valuation metric for CRAI is its P/B ratio of 5.02. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, IT has a P/B of 45.49.
Based on these metrics and many more, CRAI holds a Value grade of A, while IT has a Value grade of D.
CRAI 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 CRAI is likely the superior value option right now.
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Charles River Associates (CRAI) : Free Stock Analysis Report
Gartner, Inc. (IT) : Free Stock Analysis Report
