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AGESY or BBSEY: Which Is the Better Value Stock Right Now?

Investors interested in Insurance - Multi line stocks are likely familiar with Ageas SA (AGESY) and BB Seguridade Participacoes SA (BBSEY). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Ageas SA has a Zacks Rank of #2 (Buy), while BB Seguridade Participacoes SA has a Zacks Rank of #5 (Strong Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AGESY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

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The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

AGESY currently has a forward P/E ratio of 6.87, while BBSEY has a forward P/E of 8.07. We also note that AGESY has a PEG ratio of 0.38. 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. BBSEY currently has a PEG ratio of 1.49.

Another notable valuation metric for AGESY is its P/B ratio of 1.10. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, BBSEY has a P/B of 6.40.

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

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

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Ageas SA (AGESY) : Free Stock Analysis Report

BB Seguridade Participacoes SA (BBSEY) : Free Stock Analysis Report

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Zacks Investment Research