APG or SGSOY: Which Is the Better Value Stock Right Now?

SGSOY APG

Investors interested in stocks from the Business - Services sector have probably already heard of APi (APG - Free Report) and SGS SA (SGSOY - Free Report) . 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.

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.

APi has a Zacks Rank of #2 (Buy), while SGS SA has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that APG has an improving earnings outlook. 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.

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.

APG currently has a forward P/E ratio of 21.10, while SGSOY has a forward P/E of 24.05. We also note that APG has a PEG ratio of 1.18. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SGSOY currently has a PEG ratio of 2.86.

Another notable valuation metric for APG is its P/B ratio of 4.46. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SGSOY has a P/B of 31.41.

These metrics, and several others, help APG earn a Value grade of B, while SGSOY has been given a Value grade of C.

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

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