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BAH vs. IT: Which Stock Should Value Investors Buy Now?
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Investors interested in Consulting Services stocks are likely familiar with Booz Allen Hamilton (BAH - Free Report) and Gartner (IT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Booz Allen Hamilton and Gartner are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
BAH currently has a forward P/E ratio of 30.11, while IT has a forward P/E of 43.37. We also note that BAH has a PEG ratio of 2.59. 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. IT currently has a PEG ratio of 3.14.
Another notable valuation metric for BAH is its P/B ratio of 19.43. 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, IT has a P/B of 60.19.
Based on these metrics and many more, BAH holds a Value grade of B, while IT has a Value grade of D.
Both BAH and IT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BAH is the superior value option right now.
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BAH vs. IT: Which Stock Should Value Investors Buy Now?
Investors interested in Consulting Services stocks are likely familiar with Booz Allen Hamilton (BAH - Free Report) and Gartner (IT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Booz Allen Hamilton and Gartner are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
BAH currently has a forward P/E ratio of 30.11, while IT has a forward P/E of 43.37. We also note that BAH has a PEG ratio of 2.59. 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. IT currently has a PEG ratio of 3.14.
Another notable valuation metric for BAH is its P/B ratio of 19.43. 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, IT has a P/B of 60.19.
Based on these metrics and many more, BAH holds a Value grade of B, while IT has a Value grade of D.
Both BAH and IT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BAH is the superior value option right now.