IKTSY vs. VRSK: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Business - Information Services sector might want to consider either INTERTEK GP (IKTSY) or Verisk Analytics (VRSK). 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, both INTERTEK GP and Verisk Analytics are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
IKTSY currently has a forward P/E ratio of 20.18, while VRSK has a forward P/E of 40.03. We also note that IKTSY has a PEG ratio of 3.31. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. VRSK currently has a PEG ratio of 3.34.
Another notable valuation metric for IKTSY is its P/B ratio of 5.96. 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, VRSK has a P/B of 86.
These metrics, and several others, help IKTSY earn a Value grade of B, while VRSK has been given a Value grade of D.
Both IKTSY and VRSK are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that IKTSY is the superior value option right now.
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INTERTEK GP (IKTSY) : Free Stock Analysis Report
Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report