CRA International (NASDAQ:CRAI) appears to present a more promising value investment opportunity than Accenture (NYSE:ACN), based on several key metrics and rankings. This evaluation comes as investors in the Consulting Services sector keenly watch both stocks to determine which offers better value.
Currently, CRA International boasts a Zacks Rank of #2 (Buy), outshining Accenture's rank of #3 (Hold). The Zacks Rank system, which favors stocks with strong earnings estimate revision trends, indicates that CRAI's earnings prospects are likely improving at a more substantial rate. However, this is just one of the many factors value investors consider.
Value investors often use established valuation metrics to ascertain if a company's current share price undervalues it. These commonly used indicators include the P/E ratio, the P/S ratio, earnings yield, cash flow per share, and other fundamental metrics.
At present, CRAI trades at a forward P/E ratio of 18.79, compared to ACN's higher forward P/E of 25.66. Moreover, CRAI has a PEG ratio (a variant of the P/E ratio that also accounts for the expected EPS growth rate) of 1.45 while ACN's PEG ratio stands at 2.89.
Another crucial valuation metric is the P/B ratio, which compares a stock's market value with its book value (total assets minus total liabilities). Here again, CRAI outperforms with a P/B ratio of 3.56, significantly lower than ACN's P/B ratio of 8.08.
Considering these and other metrics, CRAI earns a Value grade of B and ACN a grade of D. This further cements the notion that CRAI may present a more attractive investment opportunity for value investors in the Consulting Services sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.