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GFN vs. WNS: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Business - Services sector have probably already heard of General Finance and WNS (Holdings) Limited (WNS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both General Finance and WNS (Holdings) Limited are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.
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.
GFN currently has a forward P/E ratio of 12.48, while WNS has a forward P/E of 22. We also note that GFN has a PEG ratio of 1.04. 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. WNS currently has a PEG ratio of 2.
Another notable valuation metric for GFN is its P/B ratio of 1.70. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WNS has a P/B of 5.76.
These are just a few of the metrics contributing to GFN's Value grade of A and WNS's Value grade of C.
Both GFN and WNS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GFN is the superior value option right now.
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GFN vs. WNS: Which Stock Is the Better Value Option?
Investors interested in stocks from the Business - Services sector have probably already heard of General Finance and WNS (Holdings) Limited (WNS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both General Finance and WNS (Holdings) Limited are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.
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.
GFN currently has a forward P/E ratio of 12.48, while WNS has a forward P/E of 22. We also note that GFN has a PEG ratio of 1.04. 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. WNS currently has a PEG ratio of 2.
Another notable valuation metric for GFN is its P/B ratio of 1.70. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WNS has a P/B of 5.76.
These are just a few of the metrics contributing to GFN's Value grade of A and WNS's Value grade of C.
Both GFN and WNS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GFN is the superior value option right now.