Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 stocks made the list for top value stocks in the Business Support Services industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Business Support Services Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

Click the button below to learn more about A+ Investor and subscribe today.

5 Undervalued Business Support Services Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 5 undervalued stocks in the Business Support Services industry for Thursday, July 25, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Business Support Services industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

CompoSecure Inc’s Value Grade

Value Grade:

CompoSecure, Inc. is a technology partner to fintechs and consumers around the globe. The Company is a provider of premium financial payment cards and cryptocurrency and digital asset storage and security solutions. Its payment card technology and metal cards with Arculus security and authentication capabilities delivers premium branded experiences, enable people to access and use their financial and digital assets, and ensure trust at the point of a transaction. The Company designs and manufactures metal cards, which includes contact and dual interface cards. Its primary metal form factors include Embedded Metal, Metal Veneer Lite, Metal Veneer and Full Metal. The Arculus platform is offered through partner-branded solutions, which include a partner-branded version of the Arculus Key card, as well as some or all of the Arculus Cold Storage Wallet and other Arculus products and/or services. Its clients include international and domestic banks, and other credit card issuers.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

CompoSecure Inc has a Value Score of 72, which is considered to be undervalued.

When you look at CompoSecure Inc’s price-to-sales ratio at 0.42 compared to the industry median at 1.66, this company has a lower price relative to revenue compared to its peers. This could make CompoSecure Inc’s stock more attractive for value investors.

CompoSecure Inc’s price-earnings ratio is 8.32 compared to the industry median at 25.06. This means it has a lower share price relative to earnings compared to its peers. This could make CompoSecure Inc more attractive for value investors.

Now, let’s assess CompoSecure Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 7.9, when compared to the industry median of 11.7, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. CompoSecure Inc’s shareholder yield is lower than its industry median ratio of 0.00%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

36Kr Holdings Inc - ADR’s Value Grade

Value Grade:

36Kr Holdings Inc. is a company that provides clients with new economy-focused business services, including online advertising services, enterprise value-added services and subscription services. The Company provides reports on companies, market updates, editorials and commentaries, and introduces some startup companies to the investment community. The Company offer services either through agencies or directly to the end customers. The Company operates its businesses primarily in the domestic market.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

36Kr Holdings Inc - ADR has a Value Score of 94, which is considered to be undervalued.

36Kr Holdings Inc - ADR’s price-to-book ratio is higher than its peers. This could make 36Kr Holdings Inc - ADR less attractive for value investors when compared to the industry median at 2.94.

You can read more about 36Kr Holdings Inc - ADR’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

VCI Global Ltd’s Value Grade

Value Grade:

VCI Global Limited is a Malaysia-based diversified holding company. Through its subsidiaries, the Company focuses on consulting, fintech, artificial intelligence (AI), robotics, cybersecurity, and gamification. It primarily offers consulting services in capital markets, real estate, AI, and technology. Under its business strategy consultancy segment, the Company focuses on listing solutions, investors relations and boardroom strategies consultancy. It begins from pre-listing diagnosis and planning to the finalization of the entire listing process. It extends its services line to include investor relations consultation. Further, it also offers services in attaining boardroom strategies. Its strategic options consist of mergers and acquisitions, initial public offerings, restructuring and transformation. It also operates Socializer Messenger, which offers built-in face recognition, self-destructing messages, and additional app lock to shield the conversations from unauthorized access.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

VCI Global Ltd has a Value Score of 80, which is considered to be undervalued.

VCI Global Ltd’s price-earnings ratio is 2.0 compared to the industry median at 25.1. This means that it has a lower price relative to its earnings compared to its peers. This makes VCI Global Ltd more attractive for value investors.

VCI Global Ltd’s price-to-book ratio is higher than its peers. This could make VCI Global Ltd less attractive for value investors when compared to the industry median at 2.94.

You can read more about VCI Global Ltd’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Willis Lease Finance Corporation’s Value Grade

Value Grade:

Willis Lease Finance Corporation, along with its subsidiaries, is a lessor and servicer of commercial aircraft and aircraft engines. The Company operates through two segments: Leasing and Related Operations, and Spare Parts Sales. The Leasing and Related Operations segment involves acquiring and leasing, primarily pursuant to operating leases, commercial aircraft, aircraft engines and other aircraft equipment and the selective purchase and resale of commercial aircraft engines and other aircraft equipment and other related businesses. The Spare Parts Sales segment involves the purchase and resale of after-market engine parts, whole engines, engine modules and portable aircraft components. The Spare Parts Sales segment also enables the Company to provide end-of-life solutions for surplus aircraft and engines, as well as manage the full lifecycle of its lease assets. Its subsidiaries include WEST Engine Funding LLC, Willis Aeronautical Services, Inc. and Willis Asset Management Limited.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Willis Lease Finance Corporation has a Value Score of 76, which is considered to be undervalued.

Willis Lease Finance Corporation’s price-earnings ratio is 9.8 compared to the industry median at 25.1. This means that it has a lower price relative to its earnings compared to its peers. This makes Willis Lease Finance Corporation more attractive for value investors.

Willis Lease Finance Corporation’s price-to-book ratio is higher than its peers. This could make Willis Lease Finance Corporation less attractive for value investors when compared to the industry median at 2.94.

You can read more about Willis Lease Finance Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Western Union Co’s Value Grade

Value Grade:

The Western Union Company is a provider of cross-border, cross-currency money movement, payments, and digital financial services. The Company’s segments include Consumer Money Transfer and Consumer Services. The Consumer Money Transfer segment facilitates money transfers, which are primarily sent from retail agent locations worldwide or through Websites and mobile devices. Its money transfer service is provided through one interconnected global network. This service is available for international cross-border transfers and, in certain countries, intra-country transfers. The Consumer Services segment includes the Company’s bill payment services, which facilitate payments for consumers, businesses, and other organizations, as well as the Company’s money order services, retail foreign exchange services, prepaid cards, lending partnerships, digital wallets, and media networks. Its services are available through a network of agent locations in more than 200 countries and territories.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Western Union Co has a Value Score of 79, which is considered to be undervalued.

Western Union Co’s price-earnings ratio is 7.3 compared to the industry median at 25.1. This means that it has a lower price relative to its earnings compared to its peers. This makes Western Union Co more attractive for value investors.

Western Union Co’s price-to-book ratio is lower than its peers. This could make Western Union Co more attractive for value investors when compared to the industry median at 2.94.

You can read more about Western Union Co’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Business Support Services Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Business Support Services stocks as well as other industrys.

Choosing Which of the 5 Best Business Support Services Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• CompoSecure Inc stock has a Value Grade of B.
• 36Kr Holdings Inc - ADR stock has a Value Grade of A.
• VCI Global Ltd stock has a Value Grade of B.
• Willis Lease Finance Corporation stock has a Value Grade of B.
• Western Union Co stock has a Value Grade of B.

Now that you have a bit more background about each of the 5 undervalued stocks in the Business Support Services industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Business Support Services Stocks

Want to learn more about Business Support Services stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 5 Undervalued Business Support Services Stocks for Thursday, July 25
• 5 Undervalued Business Support Services Stocks for Wednesday, July 24
• What You Need to Know About Core Laboratories Inc's Q1 Earnings
• What You Need to Know About Fiserv Inc's Q1 Earnings

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.