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ASGN vs. DT: Which Stock Is the Better Value Option?

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Investors with an interest in Computers - IT Services stocks have likely encountered both ASGN Inc (ASGN - Free Report) and Dynatrace (DT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, ASGN Inc has a Zacks Rank of #2 (Buy), while Dynatrace has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ASGN likely has seen a stronger improvement to its earnings outlook than DT has recently. 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

ASGN currently has a forward P/E ratio of 16.59, while DT has a forward P/E of 74.46. We also note that ASGN has a PEG ratio of 1.87. 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. DT currently has a PEG ratio of 2.34.

Another notable valuation metric for ASGN is its P/B ratio of 2.86. 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, DT has a P/B of 11.45.

Based on these metrics and many more, ASGN holds a Value grade of B, while DT has a Value grade of F.

ASGN sticks out from DT 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 report >>

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