ITRN vs. ALLE: Which Stock Is the Better Value Option?

ALLE ITRN

Investors looking for stocks in the Security and Safety Services sector might want to consider either Ituran (ITRN - Free Report) or Allegion (ALLE - Free Report) . 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Ituran is sporting a Zacks Rank of #1 (Strong Buy), while Allegion has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ITRN has an improving earnings 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.

ITRN currently has a forward P/E ratio of 10.53, while ALLE has a forward P/E of 16.58. We also note that ITRN has a PEG ratio of 0.66. 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. ALLE currently has a PEG ratio of 1.29.

Another notable valuation metric for ITRN is its P/B ratio of 4.03. 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, ALLE has a P/B of 12.97.

These are just a few of the metrics contributing to ITRN's Value grade of B and ALLE's Value grade of D.

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

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