雅虎香港財經 TRU or FDS: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Business - Information Services sector have probably already heard of TransUnion (TRU) and FactSet Research (FDS). 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, TransUnion has a Zacks Rank of #2 (Buy), while FactSet Research has a Zacks Rank of #4 (Sell). This means that TRU's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
TRU currently has a forward P/E ratio of 19.31, while FDS has a forward P/E of 25.71. We also note that TRU has a PEG ratio of 1.32. 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. FDS currently has a PEG ratio of 2.66.
Another notable valuation metric for TRU is its P/B ratio of 3.36. 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, FDS has a P/B of 8.59.
These are just a few of the metrics contributing to TRU's Value grade of B and FDS's Value grade of D.
TRU 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 TRU is likely the superior value option right now.
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TransUnion (TRU) : Free Stock Analysis Report
FactSet Research Systems Inc. (FDS) : Free Stock Analysis Report
