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DXC or DT: Which Is the Better Value Stock Right Now?
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Investors interested in Computers - IT Services stocks are likely familiar with DXC Technology Company. (DXC - Free Report) and Dynatrace (DT - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
DXC Technology Company. has a Zacks Rank of #2 (Buy), while Dynatrace has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that DXC 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 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.
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.
DXC currently has a forward P/E ratio of 10.72, while DT has a forward P/E of 84.65. We also note that DXC has a PEG ratio of 0.40. 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. DT currently has a PEG ratio of 10.91.
Another notable valuation metric for DXC is its P/B ratio of 1.82. 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, DT has a P/B of 13.77.
These are just a few of the metrics contributing to DXC's Value grade of A and DT's Value grade of F.
DXC has seen stronger estimate revision activity and sports more attractive valuation metrics than DT, so it seems like value investors will conclude that DXC is the superior option right now.
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DXC or DT: Which Is the Better Value Stock Right Now?
Investors interested in Computers - IT Services stocks are likely familiar with DXC Technology Company. (DXC - Free Report) and Dynatrace (DT - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
DXC Technology Company. has a Zacks Rank of #2 (Buy), while Dynatrace has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that DXC 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 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.
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.
DXC currently has a forward P/E ratio of 10.72, while DT has a forward P/E of 84.65. We also note that DXC has a PEG ratio of 0.40. 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. DT currently has a PEG ratio of 10.91.
Another notable valuation metric for DXC is its P/B ratio of 1.82. 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, DT has a P/B of 13.77.
These are just a few of the metrics contributing to DXC's Value grade of A and DT's Value grade of F.
DXC has seen stronger estimate revision activity and sports more attractive valuation metrics than DT, so it seems like value investors will conclude that DXC is the superior option right now.