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G vs. EXLS: Which Stock Is the Better Value Option?
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Investors interested in Outsourcing stocks are likely familiar with Genpact (G - Free Report) and ExlService Holdings (EXLS - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Genpact is sporting a Zacks Rank of #2 (Buy), while ExlService Holdings has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that G likely has seen a stronger improvement to its earnings outlook than EXLS has recently. But this is only part of the picture for value investors.
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.
G currently has a forward P/E ratio of 12.41, while EXLS has a forward P/E of 22.47. We also note that G has a PEG ratio of 1.48. 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. EXLS currently has a PEG ratio of 1.51.
Another notable valuation metric for G is its P/B ratio of 3.01. 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, EXLS has a P/B of 6.86.
Based on these metrics and many more, G holds a Value grade of A, while EXLS has a Value grade of C.
G is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that G is likely the superior value option right now.
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G vs. EXLS: Which Stock Is the Better Value Option?
Investors interested in Outsourcing stocks are likely familiar with Genpact (G - Free Report) and ExlService Holdings (EXLS - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Genpact is sporting a Zacks Rank of #2 (Buy), while ExlService Holdings has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that G likely has seen a stronger improvement to its earnings outlook than EXLS has recently. But this is only part of the picture for value investors.
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.
G currently has a forward P/E ratio of 12.41, while EXLS has a forward P/E of 22.47. We also note that G has a PEG ratio of 1.48. 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. EXLS currently has a PEG ratio of 1.51.
Another notable valuation metric for G is its P/B ratio of 3.01. 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, EXLS has a P/B of 6.86.
Based on these metrics and many more, G holds a Value grade of A, while EXLS has a Value grade of C.
G is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that G is likely the superior value option right now.