Yahoo Finance ALIT or PYCR: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Internet - Software sector might want to consider either Alight, Inc. (ALIT) or Paycor HCM, Inc. (PYCR). But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Alight, Inc. is sporting a Zacks Rank of #2 (Buy), while Paycor HCM, Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ALIT is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ALIT currently has a forward P/E ratio of 9.59, while PYCR has a forward P/E of 23.92. We also note that ALIT has a PEG ratio of 0.98. 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. PYCR currently has a PEG ratio of 1.21.
Another notable valuation metric for ALIT is its P/B ratio of 0.88. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, PYCR has a P/B of 1.77.
These metrics, and several others, help ALIT earn a Value grade of A, while PYCR has been given a Value grade of C.
ALIT sticks out from PYCR in both our Zacks Rank and Style Scores models, so value investors will likely feel that ALIT is the better option right now.
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Alight, Inc. (ALIT) : Free Stock Analysis Report
Paycor HCM, Inc. (PYCR) : Free Stock Analysis Report
