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BGSF vs. WNS: Which Stock Is the Better Value Option?

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Investors interested in Business - Services stocks are likely familiar with BGSF (BGSF - Free Report) and WNS Holdings Limited (WNS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.

Currently, both BGSF and WNS Holdings Limited are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

BGSF currently has a forward P/E ratio of 12.23, while WNS has a forward P/E of 25.66. We also note that BGSF has a PEG ratio of 0.61. 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. WNS currently has a PEG ratio of 1.95.

Another notable valuation metric for BGSF is its P/B ratio of 2.02. 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, WNS has a P/B of 6.16.

These metrics, and several others, help BGSF earn a Value grade of A, while WNS has been given a Value grade of C.

Both BGSF and WNS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BGSF is the superior value option right now.


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