CNXC vs. SGSOY: Which Stock Should Value Investors Buy Now?

Investors interested in stocks from the Business - Services sector have probably already heard of Concentrix Corporation (CNXC) and SGS SA (SGSOY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 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.

Concentrix Corporation has a Zacks Rank of #2 (Buy), while SGS SA has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CNXC has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

CNXC currently has a forward P/E ratio of 9.69, while SGSOY has a forward P/E of 21.86. We also note that CNXC has a PEG ratio of 0.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SGSOY currently has a PEG ratio of 3.43.

Another notable valuation metric for CNXC is its P/B ratio of 2.30. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SGSOY has a P/B of 12.04.

These metrics, and several others, help CNXC earn a Value grade of A, while SGSOY has been given a Value grade of C.

CNXC sticks out from SGSOY in both our Zacks Rank and Style Scores models, so value investors will likely feel that CNXC is the better option right now.

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Concentrix Corporation (CNXC) : Free Stock Analysis Report
 
SGS SA (SGSOY) : Free Stock Analysis Report
 
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