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GPX or TAL: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Schools sector have probably already heard of GP Strategies and TAL Education (TAL - 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.

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.

GP Strategies has a Zacks Rank of #1 (Strong Buy), while TAL Education has a Zacks Rank of #3 (Hold) right now. This means that GPX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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 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.

GPX currently has a forward P/E ratio of 17.32, while TAL has a forward P/E of 63.60. We also note that GPX has a PEG ratio of 1.15. 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. TAL currently has a PEG ratio of 1.92.

Another notable valuation metric for GPX is its P/B ratio of 1.27. 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, TAL has a P/B of 7.74.

These are just a few of the metrics contributing to GPX's Value grade of B and TAL's Value grade of C.

GPX 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 GPX is likely the superior value option right now.


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