Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 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.

Latest Business Support Services Stock News

Before choosing which top Business Support Services stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

The fundamental outlook for the business support services industry is neutral. Participants across the sub-industry carry out a wide scope of applications, including payments for goods and services, human resource (HR) payroll processing, and outsourcing. A variety of factors including inflation, pandemic-related impacts and geopolitical tensions have created a difficult set of obstacles for companies to maneuver. However, companies have largely recovered from pandemic-related impacts. Companies overly exposed to consumer groups have experienced larger inflationary pressures. Contractionary measures such as the Federal Reserve continuing to raise interest rates could further dampen consumer spending. It will be important that no other exogenous events emerge, such as intensified geopolitical conflicts disrupting the ongoing recovery in TPV (third party verification), employment levels, etc. Underlying payment economics likely flip to tailwinds as value-added services (VAS) revenue lines help fill the void and provide a “cushion” for upside, especially if other verticals or regions temporarily relax in the interim.

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.

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7 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 7 undervalued stocks in the Business Support Services industry for Tuesday, October 31, 2023. 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.

Air Lease Corp’s Value Grade

Value Grade:

Air Lease Corporation is an aircraft leasing company. The Company is engaged in purchasing the new technology commercial jet aircraft directly from aircraft manufacturers, such as The Boeing Company (Boeing) and Airbus S.A.S.(Airbus) and leasing those aircraft to airlines throughout the world. In addition to its leasing activities, the Company sells aircraft from its fleet to third parties, including other leasing companies, financial service companies, airlines and other investors. It also provides fleet management services. The Company owns approximately 200 airlines across 70 countries. It operates its business on a global basis, providing aircraft to airline customers in geographical regions, including markets, such as Asia, Europe, the Middle East and Africa, United Stated and Canada, Central America, South America and Mexico, and the Pacific, Australia and New Zealand.

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.

Air Lease Corp has a Value Score of 83, which is considered to be undervalued.

When you look at Air Lease Corp’s price-to-sales ratio at 1.53 compared to the industry median at 1.41, this company has a higher price relative to revenue compared to its peers. This could make Air Lease Corp’s stock less attractive for value investors.

Air Lease Corp’s price-earnings ratio is 7.97 compared to the industry median at 22.50. This means it has a lower share price relative to earnings compared to its peers. This could make Air Lease Corp more attractive for value investors.

Now, let’s assess Air Lease Corp’s EV/EBITDA ratio, also known as enterprise multiple. At 10.1, when compared to the industry median of 11.5, 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. Air Lease Corp’s shareholder yield is higher 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.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Air Lease Corp’s price-to-book ratio is lower than its industry median ratio of 2.37. This could make Air Lease Corp more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Air Lease Corp’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Air Lease Corp’s price-to-free-cash-flow ratio is lower than its industry median ratio of 12.26. This could make Air Lease Corp more attractive because the lower P/FCF ratio indicates that Air Lease Corp is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

American Shared Hospital Services’s Value Grade

Value Grade:

American Shared Hospital Services is a provider of financial and turnkey solutions to cancer treatment centers, hospitals, and large cancer networks worldwide. The Company's products include MR Guided Radiation Therapy Linacs, Advanced Linear Accelerators, Proton Beam Radiation Therapy Operations (PBRT), Brachytherapy systems, and through the Company's GK Financing partnership with Elekta, the Leksell Gamma Knife product and services. The Gamma Knife radiosurgery equipment is a non-invasive treatment for malignant and benign brain tumors, vascular malformations, and trigeminal neuralgia (facial pain). The PBRT is an alternative to traditional external beam, photon-based radiation delivered by linear accelerators. PBRT treats prostate, brain, spine, head and neck, lung, breast, gastrointestinal tract, and pediatric tumors. The Company typically provides the equipment, as well as planning, installation, reimbursement and marketing support services.

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.

American Shared Hospital Services has a Value Score of 79, which is considered to be undervalued.

American Shared Hospital Services’s price-earnings ratio is 23.0 compared to the industry median at 22.5. This means that it has a higher price relative to its earnings compared to its peers. This makes American Shared Hospital Services less attractive for value investors.

American Shared Hospital Services’s price-to-book ratio is higher than its peers. This could make American Shared Hospital Services less attractive for value investors when compared to the industry median at 2.37.

You can read more about American Shared Hospital Services’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.

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, foreign 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 74, which is considered to be undervalued.

CompoSecure Inc’s price-earnings ratio is 9.2 compared to the industry median at 22.5. This means that it has a lower price relative to its earnings compared to its peers. This makes CompoSecure Inc more attractive for value investors.

You can read more about CompoSecure Inc’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.

SECTOR 10 Inc’s Value Grade

Value Grade:

Sector 10, Inc. is a development-stage company. The Company markets the MRU and SRU products, and the various solutions related to mobile assets. The Company is evaluating various options for use of its equipment in future operations. The Company is not having any sales activity and it has no revenue.

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.

SECTOR 10 Inc has a Value Score of 98, which is considered to be undervalued.

SECTOR 10 Inc’s price-earnings ratio is 0.2 compared to the industry median at 22.5. This means that it has a lower price relative to its earnings compared to its peers. This makes SECTOR 10 Inc more attractive for value investors.

You can read more about SECTOR 10 Inc’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.

Senstar Technologies Ltd’s Value Grade

Value Grade:

Senstar Technologies Ltd, formerly known as Magal Security Systems Ltd, is an Israel-based security solutions provider. The Company provides comprehensive physical, video and access control security products and solutions as well as critical site management. Senstar Technologies Ltd delivers its products as well as tailormade security solutions and turnkey projects to customers in worldwide.

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.

Senstar Technologies Ltd has a Value Score of 66, which is considered to be undervalued.

Senstar Technologies Ltd’s price-earnings ratio is 10.9 compared to the industry median at 22.5. This means that it has a lower price relative to its earnings compared to its peers. This makes Senstar Technologies Ltd more attractive for value investors.

Senstar Technologies Ltd’s price-to-book ratio is higher than its peers. This could make Senstar Technologies Ltd less attractive for value investors when compared to the industry median at 2.37.

You can read more about Senstar Technologies 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.

Team Inc’s Value Grade

Value Grade:

Team, Inc. is a provider of specialty industrial services offering clients access to a full suite of conventional, specialized, and proprietary mechanical, heat-treating, and inspection services. It operates in two segments: Inspection and Heat Treating (IHT) and Mechanical Services (MS). The IHT segment offers specialty inspection services as well as heat-treating services and digital imaging services. It offers various IHT services, such as non-destructive evaluation and testing services, radiographic testing, ultrasonic testing, magnetic particle inspection, liquid penetrant inspection, positive material identification, electromagnetic testing, alternating current field measurement, phased array ultrasonic testing, terminals and storage inspection and management programs, and rope access. The MS segment provides onstream services, such as leak repair services, engineered composite repair, emissions control/compliance services, hot tapping services, and field machining services.

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.

Team Inc has a Value Score of 87, which is considered to be undervalued.

Team Inc’s price-to-book ratio is higher than its peers. This could make Team Inc less attractive for value investors when compared to the industry median at 2.37.

You can read more about Team Inc’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.

TSS Inc’s Value Grade

Value Grade:

TSS, Inc. provides a range of comprehensive services to enable the planning, design, deployment, maintenance, and refurbishment of end-user and enterprise systems, including the mission-critical facilities they are housed in. The Company operates through two segments: facilities and systems integration. The facilities segment is involved in the design, project management and maintenance of data centers and mission-critical business operations. The systems integration segment integrates information technology (IT) equipment for original equipment manufacturer (OEM) vendors and customers to be used inside data center environments, including modular data centers. It provides a single-source solution for enabling technologies in data centers, operation centers, server rooms, and security operations centers, among others. Its services include technology consulting, design and engineering, project management, systems integration, facility management, and IT procurement and reseller services.

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.

TSS Inc has a Value Score of 64, which is considered to be undervalued.

TSS Inc’s price-to-book ratio is lower than its peers. This could make TSS Inc more attractive for value investors when compared to the industry median at 2.37.

You can read more about TSS Inc’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 7 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.

• Air Lease Corp stock has a Value Grade of A.
• American Shared Hospital Services stock has a Value Grade of B.
• CompoSecure Inc stock has a Value Grade of B.
• SECTOR 10 Inc stock has a Value Grade of A.
• Senstar Technologies Ltd stock has a Value Grade of B.
• Team Inc stock has a Value Grade of A.
• TSS Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 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.

• 7 Undervalued Business Support Services Stocks for Tuesday, October 31
• 4 Undervalued Business Support Services Stocks for Monday, October 30
• Why Taskus Inc’s (TASK) Stock Is Up 4.47%
• Why Willdan Group, Inc.’s (WLDN) Stock Is Up 4.31%

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.