Investors with an interest in Consulting Services stocks have likely encountered both Information Services Group (III) and Equifax (EFX). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Information Services Group has a Zacks Rank of #2 (Buy), while Equifax has a Zacks Rank of #3 (Hold). This means that III's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

III currently has a forward P/E ratio of 13.47, while EFX has a forward P/E of 27.15. We also note that III has a PEG ratio of 0.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EFX currently has a PEG ratio of 2.38.

Another notable valuation metric for III is its P/B ratio of 1.87. 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, EFX has a P/B of 5.37.

These metrics, and several others, help III earn a Value grade of A, while EFX has been given a Value grade of D.

III is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that III is likely the superior value option right now.

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Information Services Group, Inc. (III) : Free Stock Analysis Report

Equifax, Inc. (EFX) : Free Stock Analysis Report

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

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