ASAZY vs. ALLE: Which Stock Is the Better Value Option?
Investors looking for stocks in the Security and Safety Services sector might want to consider either Assa Abloy AB (ASAZY) or Allegion (ALLE). But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Assa Abloy AB and Allegion are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
ASAZY currently has a forward P/E ratio of 17.97, while ALLE has a forward P/E of 18.30. We also note that ASAZY has a PEG ratio of 1.56. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ALLE currently has a PEG ratio of 3.01.
Another notable valuation metric for ASAZY is its P/B ratio of 3.12. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ALLE has a P/B of 10.22.
These are just a few of the metrics contributing to ASAZY's Value grade of B and ALLE's Value grade of C.
Both ASAZY and ALLE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ASAZY is the superior value option right now.
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Assa Abloy AB (ASAZY) : Free Stock Analysis Report
Allegion PLC (ALLE) : Free Stock Analysis Report
