Back to top

Image: Bigstock

IKTSY or VRSK: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors interested in Business - Information Services stocks are likely familiar with INTERTEK GP (IKTSY - Free Report) and Verisk Analytics (VRSK - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, INTERTEK GP is sporting a Zacks Rank of #2 (Buy), while Verisk Analytics has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that IKTSY has an improving earnings outlook. 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 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.

IKTSY currently has a forward P/E ratio of 20.47, while VRSK has a forward P/E of 41.93. We also note that IKTSY has a PEG ratio of 2.95. 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. VRSK currently has a PEG ratio of 3.41.

Another notable valuation metric for IKTSY is its P/B ratio of 5.83. 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, VRSK has a P/B of 136.06.

These metrics, and several others, help IKTSY earn a Value grade of B, while VRSK has been given a Value grade of D.

IKTSY stands above VRSK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that IKTSY is the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Verisk Analytics, Inc. (VRSK) - free report >>

INTERTEK GP (IKTSY) - free report >>

Published in