ASGN or INOV: Which Is the Better Value Stock Right Now?
ASGN vs. INOV: Which Stock Is the Better Value Option?
Investors interested in stocks from the Computers - IT Services sector have probably already heard of ASGN Inc (ASGN) and Inovalon Holdings (INOV). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
ASGN Inc has a Zacks Rank of #2 (Buy), while Inovalon Holdings has a Zacks Rank of #3 (Hold) right now. This means that ASGN'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 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.
ASGN currently has a forward P/E ratio of 22.13, while INOV has a forward P/E of 54.65. We also note that ASGN has a PEG ratio of 1.93. 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. INOV currently has a PEG ratio of 2.10.
Another notable valuation metric for ASGN is its P/B ratio of 3.47. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, INOV has a P/B of 8.57.
These are just a few of the metrics contributing to ASGN's Value grade of B and INOV's Value grade of D.
ASGN sticks out from INOV in both our Zacks Rank and Style Scores models, so value investors will likely feel that ASGN is the better option right now.
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ASGN Incorporated (ASGN): Free Stock Analysis Report
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