CTSH vs. HXGBY: Which Stock Is the Better Value Option?

Core Insights - Cognizant (CTSH) is currently rated as a 2 (Buy) by Zacks Rank, while Hexagon AB Unsponsored ADR (HXGBY) holds a 3 (Hold) rating, indicating a more favorable outlook for CTSH in terms of earnings estimates [3] - Value investors utilize various traditional metrics to identify undervalued stocks, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Valuation Metrics - CTSH has a forward P/E ratio of 15.26, significantly lower than HXGBY's forward P/E of 24.37, suggesting that CTSH may be undervalued [5] - The PEG ratio for CTSH is 1.64, while HXGBY's PEG ratio is 3.03, indicating that CTSH has a more favorable earnings growth outlook relative to its price [5] - CTSH's P/B ratio stands at 2.6 compared to HXGBY's P/B of 2.71, further supporting the argument that CTSH is more attractively valued [6] Conclusion - Based on stronger estimate revision activity and more attractive valuation metrics, CTSH is positioned as the superior option for value investors compared to HXGBY [7]