Yahoo Finance APG or SGSOY: Which Is the Better Value Stock Right Now?
Investors with an interest in Business - Services stocks have likely encountered both APi (APG) and SGS SA (SGSOY). But which of these two stocks presents investors with the better value opportunity right now? Let's 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.
Right now, both APi and SGS SA are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
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.
APG currently has a forward P/E ratio of 16.18, while SGSOY has a forward P/E of 23.30. We also note that APG has a PEG ratio of 0.95. 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. SGSOY currently has a PEG ratio of 3.57.
Another notable valuation metric for APG is its P/B ratio of 2.65. 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, SGSOY has a P/B of 21.69.
These are just a few of the metrics contributing to APG's Value grade of A and SGSOY's Value grade of C.
Both APG and SGSOY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that APG is the superior value option right now.
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APi Group Corporation (APG) : Free Stock Analysis Report
SGS SA (SGSOY) : Free Stock Analysis Report
