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KD vs. TRI: Which Stock Is the Better Value Option?
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Investors interested in Technology Services stocks are likely familiar with Kyndryl Holdings, Inc. (KD - Free Report) and Thomson Reuters (TRI - 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.
Kyndryl Holdings, Inc. and Thomson Reuters are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that KD likely has seen a stronger improvement to its earnings outlook than TRI has recently. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
KD currently has a forward P/E ratio of 19.33, while TRI has a forward P/E of 44.23. We also note that KD has a PEG ratio of 3.87. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TRI currently has a PEG ratio of 6.20.
Another notable valuation metric for KD is its P/B ratio of 5.46. 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, TRI has a P/B of 6.64.
These metrics, and several others, help KD earn a Value grade of A, while TRI has been given a Value grade of D.
KD has seen stronger estimate revision activity and sports more attractive valuation metrics than TRI, so it seems like value investors will conclude that KD is the superior option right now.
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KD vs. TRI: Which Stock Is the Better Value Option?
Investors interested in Technology Services stocks are likely familiar with Kyndryl Holdings, Inc. (KD - Free Report) and Thomson Reuters (TRI - 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.
Kyndryl Holdings, Inc. and Thomson Reuters are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that KD likely has seen a stronger improvement to its earnings outlook than TRI has recently. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
KD currently has a forward P/E ratio of 19.33, while TRI has a forward P/E of 44.23. We also note that KD has a PEG ratio of 3.87. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TRI currently has a PEG ratio of 6.20.
Another notable valuation metric for KD is its P/B ratio of 5.46. 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, TRI has a P/B of 6.64.
These metrics, and several others, help KD earn a Value grade of A, while TRI has been given a Value grade of D.
KD has seen stronger estimate revision activity and sports more attractive valuation metrics than TRI, so it seems like value investors will conclude that KD is the superior option right now.