Back to top

Image: Bigstock

AB or APO: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors with an interest in Financial - Investment Management stocks have likely encountered both AllianceBernstein (AB - Free Report) and Apollo Global Management Inc. (APO - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 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, AllianceBernstein is sporting a Zacks Rank of #2 (Buy), while Apollo Global Management Inc. has a Zacks Rank of #4 (Sell). This means that AB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

AB currently has a forward P/E ratio of 11.27, while APO has a forward P/E of 14.11. We also note that AB has a PEG ratio of 0.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. APO currently has a PEG ratio of 0.89.

Another notable valuation metric for AB is its P/B ratio of 1.85. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, APO has a P/B of 2.61.

Based on these metrics and many more, AB holds a Value grade of B, while APO has a Value grade of D.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


AllianceBernstein Holding L.P. (AB) - free report >>

Apollo Global Management Inc. (APO) - free report >>

Published in