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BRC or ALLE: Which Is the Better Value Stock Right Now?
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Investors interested in Security and Safety Services stocks are likely familiar with Brady (BRC - Free Report) and Allegion (ALLE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Brady has a Zacks Rank of #2 (Buy), while Allegion has a Zacks Rank of #3 (Hold) right now. This means that BRC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
BRC currently has a forward P/E ratio of 20.36, while ALLE has a forward P/E of 25.08. We also note that BRC has a PEG ratio of 2.91. 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 3.61.
Another notable valuation metric for BRC is its P/B ratio of 2.95. 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, ALLE has a P/B of 15.45.
These are just a few of the metrics contributing to BRC's Value grade of B and ALLE's Value grade of C.
BRC has seen stronger estimate revision activity and sports more attractive valuation metrics than ALLE, so it seems like value investors will conclude that BRC is the superior option right now.
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BRC or ALLE: Which Is the Better Value Stock Right Now?
Investors interested in Security and Safety Services stocks are likely familiar with Brady (BRC - Free Report) and Allegion (ALLE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Brady has a Zacks Rank of #2 (Buy), while Allegion has a Zacks Rank of #3 (Hold) right now. This means that BRC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
BRC currently has a forward P/E ratio of 20.36, while ALLE has a forward P/E of 25.08. We also note that BRC has a PEG ratio of 2.91. 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 3.61.
Another notable valuation metric for BRC is its P/B ratio of 2.95. 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, ALLE has a P/B of 15.45.
These are just a few of the metrics contributing to BRC's Value grade of B and ALLE's Value grade of C.
BRC has seen stronger estimate revision activity and sports more attractive valuation metrics than ALLE, so it seems like value investors will conclude that BRC is the superior option right now.