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CLGX vs. IT: Which Stock Should Value Investors Buy Now?

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Investors interested in Consulting Services stocks are likely familiar with CoreLogic and Gartner (IT - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, CoreLogic has a Zacks Rank of #2 (Buy), while Gartner has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CLGX likely has seen a stronger improvement to its earnings outlook than IT 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.

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.

CLGX currently has a forward P/E ratio of 17.31, while IT has a forward P/E of 42.96. We also note that CLGX has a PEG ratio of 1.44. 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. IT currently has a PEG ratio of 4.30.

Another notable valuation metric for CLGX is its P/B ratio of 4.30. 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, IT has a P/B of 13.16.

Based on these metrics and many more, CLGX holds a Value grade of B, while IT has a Value grade of D.

CLGX sticks out from IT in both our Zacks Rank and Style Scores models, so value investors will likely feel that CLGX is the better option right now.


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