Investors looking for stocks in the Consulting Services sector might want to consider either Booz Allen Hamilton (BAH) or Gartner (IT). 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Booz Allen Hamilton has a Zacks Rank of #2 (Buy), while Gartner has a Zacks Rank of #4 (Sell). This means that BAH's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

BAH currently has a forward P/E ratio of 17.77, while IT has a forward P/E of 39.81. We also note that BAH has a PEG ratio of 1.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. IT currently has a PEG ratio of 3.26.

Another notable valuation metric for BAH is its P/B ratio of 11.77. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, IT has a P/B of 28.33.

Based on these metrics and many more, BAH holds a Value grade of B, while IT has a Value grade of D.

BAH sticks out from IT in both our Zacks Rank and Style Scores models, so value investors will likely feel that BAH is the better option right now.

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Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report

Gartner, Inc. (IT) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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