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PSN vs. PLTR: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Technology Services sector might want to consider either Parsons (PSN - Free Report) or Palantir Technologies Inc. (PLTR - 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.
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.
Currently, Parsons has a Zacks Rank of #2 (Buy), while Palantir Technologies Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PSN is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
PSN currently has a forward P/E ratio of 22.77, while PLTR has a forward P/E of 64.74. We also note that PSN has a PEG ratio of 1.91. 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. PLTR currently has a PEG ratio of 2.09.
Another notable valuation metric for PSN is its P/B ratio of 2.21. 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, PLTR has a P/B of 8.51.
These metrics, and several others, help PSN earn a Value grade of B, while PLTR has been given a Value grade of F.
PSN has seen stronger estimate revision activity and sports more attractive valuation metrics than PLTR, so it seems like value investors will conclude that PSN is the superior option right now.
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PSN vs. PLTR: Which Stock Is the Better Value Option?
Investors looking for stocks in the Technology Services sector might want to consider either Parsons (PSN - Free Report) or Palantir Technologies Inc. (PLTR - 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.
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.
Currently, Parsons has a Zacks Rank of #2 (Buy), while Palantir Technologies Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PSN is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
PSN currently has a forward P/E ratio of 22.77, while PLTR has a forward P/E of 64.74. We also note that PSN has a PEG ratio of 1.91. 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. PLTR currently has a PEG ratio of 2.09.
Another notable valuation metric for PSN is its P/B ratio of 2.21. 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, PLTR has a P/B of 8.51.
These metrics, and several others, help PSN earn a Value grade of B, while PLTR has been given a Value grade of F.
PSN has seen stronger estimate revision activity and sports more attractive valuation metrics than PLTR, so it seems like value investors will conclude that PSN is the superior option right now.