WNS or SGSOY: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Business - Services sector might want to consider either WNS (Holdings) Limited (WNS) or SGS SA (SGSOY). 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
WNS (Holdings) Limited has a Zacks Rank of #2 (Buy), while SGS SA has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that WNS is likely seeing its earnings outlook improve to a greater extent. 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 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.
WNS currently has a forward P/E ratio of 14.07, while SGSOY has a forward P/E of 21.51. We also note that WNS has a PEG ratio of 1.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SGSOY currently has a PEG ratio of 3.61.
Another notable valuation metric for WNS is its P/B ratio of 3.47. 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, SGSOY has a P/B of 41.22.
These metrics, and several others, help WNS earn a Value grade of A, while SGSOY has been given a Value grade of C.
WNS stands above SGSOY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that WNS is the superior value option right now.
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WNS (Holdings) Limited (WNS) : Free Stock Analysis Report
SGS SA (SGSOY) : Free Stock Analysis Report