Yahoo Finance III vs. ACN: Which Stock Is the Better Value Option?
Investors with an interest in Consulting Services stocks have likely encountered both Information Services Group (III) and Accenture (ACN). 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 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.
Right now, Information Services Group is sporting a Zacks Rank of #2 (Buy), while Accenture has a Zacks Rank of #3 (Hold). This means that III's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
III currently has a forward P/E ratio of 11.80, while ACN has a forward P/E of 23.98. We also note that III has a PEG ratio of 0.79. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ACN currently has a PEG ratio of 2.52.
Another notable valuation metric for III is its P/B ratio of 2.42. 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, ACN has a P/B of 7.17.
These metrics, and several others, help III earn a Value grade of A, while ACN has been given a Value grade of C.
III stands above ACN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that III is the superior value option right now.
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Information Services Group, Inc. (III) : Free Stock Analysis Report
Accenture PLC (ACN) : Free Stock Analysis Report
