Core Insights - The article compares two companies in the Schools sector, Perdoceo Education (PRDO) and K12 (LRN), to determine which is the better undervalued stock option for investors [1] Valuation Metrics - Perdoceo Education has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while K12 has a Zacks Rank of 3 (Hold) [3] - PRDO's forward P/E ratio is 11.79, significantly lower than LRN's forward P/E of 16.66, suggesting PRDO is more undervalued [5] - The PEG ratio for PRDO is 0.79, compared to LRN's PEG ratio of 0.83, indicating PRDO's expected earnings growth is more favorable [5] - PRDO's P/B ratio is 1.98, while LRN's P/B ratio is 3.97, further supporting PRDO's valuation advantage [6] - Based on these metrics, PRDO holds a Value grade of A, while LRN has a Value grade of C, reinforcing PRDO as the superior value option [6]
PRDO vs. LRN: Which Stock Is the Better Value Option?