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NVEE or ACN: Which Is the Better Value Stock Right Now?

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Investors with an interest in Consulting Services stocks have likely encountered both NV5 Holdings (NVEE - Free Report) and Accenture (ACN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, NV5 Holdings is sporting a Zacks Rank of #2 (Buy), while Accenture has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that NVEE has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

NVEE currently has a forward P/E ratio of 15.75, while ACN has a forward P/E of 28.87. We also note that NVEE has a PEG ratio of 1.15. 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. ACN currently has a PEG ratio of 2.89.

Another notable valuation metric for NVEE is its P/B ratio of 1.77. 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, ACN has a P/B of 8.99.

Based on these metrics and many more, NVEE holds a Value grade of B, while ACN has a Value grade of C.

NVEE has seen stronger estimate revision activity and sports more attractive valuation metrics than ACN, so it seems like value investors will conclude that NVEE is the superior option right now.


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