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ATGE or LOPE: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Schools sector might want to consider either Adtalem Global Education (ATGE - Free Report) or Grand Canyon Education (LOPE - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Adtalem Global Education has a Zacks Rank of #1 (Strong Buy), while Grand Canyon Education has 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 ATGE is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
ATGE currently has a forward P/E ratio of 10.17, while LOPE has a forward P/E of 17. We also note that ATGE has a PEG ratio of 0.68. 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. LOPE currently has a PEG ratio of 1.13.
Another notable valuation metric for ATGE is its P/B ratio of 1.35. 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, LOPE has a P/B of 5.44.
Based on these metrics and many more, ATGE holds a Value grade of B, while LOPE has a Value grade of C.
ATGE stands above LOPE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ATGE is the superior value option right now.
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ATGE or LOPE: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Schools sector might want to consider either Adtalem Global Education (ATGE - Free Report) or Grand Canyon Education (LOPE - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Adtalem Global Education has a Zacks Rank of #1 (Strong Buy), while Grand Canyon Education has 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 ATGE is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
ATGE currently has a forward P/E ratio of 10.17, while LOPE has a forward P/E of 17. We also note that ATGE has a PEG ratio of 0.68. 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. LOPE currently has a PEG ratio of 1.13.
Another notable valuation metric for ATGE is its P/B ratio of 1.35. 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, LOPE has a P/B of 5.44.
Based on these metrics and many more, ATGE holds a Value grade of B, while LOPE has a Value grade of C.
ATGE stands above LOPE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ATGE is the superior value option right now.