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CTSH vs. WIT: Which Stock Is the Better Value Option?
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Investors with an interest in Business - Software Services stocks have likely encountered both Cognizant (CTSH - Free Report) and Wipro Limited (WIT - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Cognizant is sporting a Zacks Rank of #2 (Buy), while Wipro Limited 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 CTSH has an improving earnings outlook. 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.
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.
CTSH currently has a forward P/E ratio of 20.40, while WIT has a forward P/E of 27.35. We also note that CTSH has a PEG ratio of 1.70. 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. WIT currently has a PEG ratio of 3.04.
Another notable valuation metric for CTSH is its P/B ratio of 4.08. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WIT has a P/B of 4.97.
These metrics, and several others, help CTSH earn a Value grade of B, while WIT has been given a Value grade of C.
CTSH 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 CTSH is likely the superior value option right now.
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CTSH vs. WIT: Which Stock Is the Better Value Option?
Investors with an interest in Business - Software Services stocks have likely encountered both Cognizant (CTSH - Free Report) and Wipro Limited (WIT - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Cognizant is sporting a Zacks Rank of #2 (Buy), while Wipro Limited 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 CTSH has an improving earnings outlook. 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.
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.
CTSH currently has a forward P/E ratio of 20.40, while WIT has a forward P/E of 27.35. We also note that CTSH has a PEG ratio of 1.70. 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. WIT currently has a PEG ratio of 3.04.
Another notable valuation metric for CTSH is its P/B ratio of 4.08. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WIT has a P/B of 4.97.
These metrics, and several others, help CTSH earn a Value grade of B, while WIT has been given a Value grade of C.
CTSH 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 CTSH is likely the superior value option right now.