DAVA vs. EPAM: Which Stock Should Value Investors Buy Now?

Core Insights - Endava PLC Sponsored ADR (DAVA) is currently rated as a Strong Buy with a Zacks Rank of 1, while Epam (EPAM) has a Zacks Rank of 4, indicating a Sell recommendation [3] - DAVA shows a more favorable earnings estimate revision activity compared to EPAM, suggesting a better analyst outlook for DAVA [3][7] Valuation Metrics - DAVA has a forward P/E ratio of 11.48, while EPAM's forward P/E is 13.84, indicating that DAVA may be undervalued relative to EPAM [5] - The PEG ratio for DAVA is 0.52, which is significantly lower than EPAM's PEG ratio of 2, suggesting that DAVA offers better value considering its expected earnings growth [5] - DAVA's P/B ratio stands at 1.20, compared to EPAM's P/B ratio of 2.27, further supporting the notion that DAVA is more attractively valued [6] Value Grades - Based on the analysis of various valuation metrics, DAVA has earned a Value grade of B, while EPAM has a Value grade of C, indicating that DAVA is perceived as a better value investment [6]