WNS vs. VVI: Which Stock Is the Better Value Option?

Investors interested in stocks from the Business - Services sector have probably already heard of WNS Holdings Limited (WNS) and Viad (VVI). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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, WNS Holdings Limited has a Zacks Rank of #2 (Buy), while Viad has a Zacks Rank of #5 (Strong Sell). This means that WNS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

WNS currently has a forward P/E ratio of 22.13, while VVI has a forward P/E of 31.92. We also note that WNS has a PEG ratio of 1.79. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. VVI currently has a PEG ratio of 2.13.

Another notable valuation metric for WNS is its P/B ratio of 5.87. 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, VVI has a P/B of 6.84.

These metrics, and several others, help WNS earn a Value grade of B, while VVI has been given a Value grade of C.

WNS has seen stronger estimate revision activity and sports more attractive valuation metrics than VVI, so it seems like value investors will conclude that WNS is the superior option right now.

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WNS Holdings Limited (WNS) : Free Stock Analysis Report
 
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