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BGSF vs. VVI: 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 Viad (VVI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

Currently, both BGSF and Viad 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 only part of the picture for value investors.

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 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.

BGSF currently has a forward P/E ratio of 11.53, while VVI has a forward P/E of 39.16. We also note that BGSF has a PEG ratio of 0.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VVI currently has a PEG ratio of 2.61.

Another notable valuation metric for BGSF is its P/B ratio of 1.38. 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, VVI has a P/B of 10.16.

These are just a few of the metrics contributing to BGSF's Value grade of A and VVI's Value grade of C.

Both BGSF and VVI 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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