BCOR vs. AQUA: Which Stock Is the Better Value Option?
Investors looking for stocks in the Technology Services sector might want to consider either Blucora (BCOR) or Evoqua Water (AQUA). 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 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.
Blucora and Evoqua Water are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that BCOR likely has seen a stronger improvement to its earnings outlook than AQUA has recently. But this is only part of the picture 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.
BCOR currently has a forward P/E ratio of 10.80, while AQUA has a forward P/E of 43.14. We also note that BCOR has a PEG ratio of 0.72. 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. AQUA currently has a PEG ratio of 2.88.
Another notable valuation metric for BCOR is its P/B ratio of 2.66. 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, AQUA has a P/B of 7.03.
These are just a few of the metrics contributing to BCOR's Value grade of B and AQUA's Value grade of C.
BCOR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BCOR is likely the superior value option right now.
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Blucora, Inc. (BCOR) : Free Stock Analysis Report
Evoqua Water Technologies (AQUA) : Free Stock Analysis Report
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