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ALIT or PYCR: Which Is the Better Value Stock Right Now?
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Investors interested in Internet - Software stocks are likely familiar with Alight, Inc. (ALIT - Free Report) and Paycor HCM, Inc. (PYCR - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Alight, Inc. has a Zacks Rank of #2 (Buy), while Paycor HCM, Inc. has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ALIT is likely seeing its earnings outlook improve to a greater extent. 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ALIT currently has a forward P/E ratio of 13.31, while PYCR has a forward P/E of 41.11. We also note that ALIT has a PEG ratio of 1.02. 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. PYCR currently has a PEG ratio of 2.
Another notable valuation metric for ALIT is its P/B ratio of 1.15. 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, PYCR has a P/B of 2.71.
These are just a few of the metrics contributing to ALIT's Value grade of B and PYCR's Value grade of F.
ALIT stands above PYCR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ALIT is the superior value option right now.
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ALIT or PYCR: Which Is the Better Value Stock Right Now?
Investors interested in Internet - Software stocks are likely familiar with Alight, Inc. (ALIT - Free Report) and Paycor HCM, Inc. (PYCR - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Alight, Inc. has a Zacks Rank of #2 (Buy), while Paycor HCM, Inc. has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ALIT is likely seeing its earnings outlook improve to a greater extent. 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ALIT currently has a forward P/E ratio of 13.31, while PYCR has a forward P/E of 41.11. We also note that ALIT has a PEG ratio of 1.02. 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. PYCR currently has a PEG ratio of 2.
Another notable valuation metric for ALIT is its P/B ratio of 1.15. 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, PYCR has a P/B of 2.71.
These are just a few of the metrics contributing to ALIT's Value grade of B and PYCR's Value grade of F.
ALIT stands above PYCR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ALIT is the superior value option right now.