Investors interested in Technology Services stocks are likely familiar with Ingram Micro (INGM) and Nomura Research Institute (NRILY). 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Ingram Micro has a Zacks Rank of #2 (Buy), while Nomura Research Institute has a Zacks Rank of #5 (Strong Sell) right now. Investors should feel comfortable knowing that INGM likely has seen a stronger improvement to its earnings outlook than NRILY has recently. However, value investors will care about much more than just this.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
INGM currently has a forward P/E ratio of 9.08, while NRILY has a forward P/E of 21.78. We also note that INGM has a PEG ratio of 0.87. 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. NRILY currently has a PEG ratio of 1.74.
Another notable valuation metric for INGM is its P/B ratio of 1.65. 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, NRILY has a P/B of 6.01.
These metrics, and several others, help INGM earn a Value grade of A, while NRILY has been given a Value grade of C.
INGM 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 INGM is likely the superior value option right now.
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Nomura Research Institute (NRILY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
