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PSN or MRVL: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Technology Services sector have probably already heard of Parsons (PSN - Free Report) and Marvell Technology (MRVL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Parsons is sporting a Zacks Rank of #2 (Buy), while Marvell Technology has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PSN likely has seen a stronger improvement to its earnings outlook than MRVL has recently. 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 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.

PSN currently has a forward P/E ratio of 26.17, while MRVL has a forward P/E of 39.53. We also note that PSN has a PEG ratio of 1.95. 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. MRVL currently has a PEG ratio of 5.17.

Another notable valuation metric for PSN is its P/B ratio of 2.90. 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, MRVL has a P/B of 3.39.

These are just a few of the metrics contributing to PSN's Value grade of B and MRVL's Value grade of D.

PSN 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 PSN is likely the superior value option right now.


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