Yahoo Finance APG vs. SGSOY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Business - Services sector might want to consider either APi (APG) or SGS SA (SGSOY). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both APi and SGS SA are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
APG currently has a forward P/E ratio of 14.40, while SGSOY has a forward P/E of 22.37. We also note that APG has a PEG ratio of 0.85. 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 3.43.
Another notable valuation metric for APG is its P/B ratio of 2.36. 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, SGSOY has a P/B of 21.32.
Based on these metrics and many more, APG holds a Value grade of A, while SGSOY has a 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
