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PRDO or LOPE: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Schools sector have probably already heard of Perdoceo Education (PRDO - Free Report) and Grand Canyon Education (LOPE - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Right now, Perdoceo Education is sporting a Zacks Rank of #2 (Buy), while Grand Canyon Education 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 PRDO is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
PRDO currently has a forward P/E ratio of 8.32, while LOPE has a forward P/E of 17.30. We also note that PRDO has a PEG ratio of 0.55. 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. LOPE currently has a PEG ratio of 1.15.
Another notable valuation metric for PRDO is its P/B ratio of 1.38. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, LOPE has a P/B of 5.53.
Based on these metrics and many more, PRDO holds a Value grade of A, while LOPE has a Value grade of C.
PRDO stands above LOPE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PRDO is the superior value option right now.
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PRDO or LOPE: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Schools sector have probably already heard of Perdoceo Education (PRDO - Free Report) and Grand Canyon Education (LOPE - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Right now, Perdoceo Education is sporting a Zacks Rank of #2 (Buy), while Grand Canyon Education 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 PRDO is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
PRDO currently has a forward P/E ratio of 8.32, while LOPE has a forward P/E of 17.30. We also note that PRDO has a PEG ratio of 0.55. 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. LOPE currently has a PEG ratio of 1.15.
Another notable valuation metric for PRDO is its P/B ratio of 1.38. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, LOPE has a P/B of 5.53.
Based on these metrics and many more, PRDO holds a Value grade of A, while LOPE has a Value grade of C.
PRDO stands above LOPE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PRDO is the superior value option right now.