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PSN vs. CLMB: Which Stock Is the Better Value Option?
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Investors interested in Technology Services stocks are likely familiar with Parsons (PSN - Free Report) and Climb Global Solutions (CLMB - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, both Parsons and Climb Global Solutions are holding a Zacks Rank of # 1 (Strong Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
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 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.
PSN currently has a forward P/E ratio of 28.33, while CLMB has a forward P/E of 31.32. We also note that PSN has a PEG ratio of 1.53. 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. CLMB currently has a PEG ratio of 1.96.
Another notable valuation metric for PSN is its P/B ratio of 4.26. 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, CLMB has a P/B of 6.81.
These are just a few of the metrics contributing to PSN's Value grade of B and CLMB's Value grade of C.
Both PSN and CLMB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PSN is the superior value option right now.
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PSN vs. CLMB: Which Stock Is the Better Value Option?
Investors interested in Technology Services stocks are likely familiar with Parsons (PSN - Free Report) and Climb Global Solutions (CLMB - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, both Parsons and Climb Global Solutions are holding a Zacks Rank of # 1 (Strong Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
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 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.
PSN currently has a forward P/E ratio of 28.33, while CLMB has a forward P/E of 31.32. We also note that PSN has a PEG ratio of 1.53. 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. CLMB currently has a PEG ratio of 1.96.
Another notable valuation metric for PSN is its P/B ratio of 4.26. 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, CLMB has a P/B of 6.81.
These are just a few of the metrics contributing to PSN's Value grade of B and CLMB's Value grade of C.
Both PSN and CLMB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PSN is the superior value option right now.