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LRN vs. AFYA: Which Stock Is the Better Value Option?
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Investors interested in Schools stocks are likely familiar with K12 (LRN - Free Report) and Afya (AFYA - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, K12 has a Zacks Rank of #1 (Strong Buy), while Afya 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 LRN has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
LRN currently has a forward P/E ratio of 17.63, while AFYA has a forward P/E of 25.38. We also note that LRN has a PEG ratio of 0.88. 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. AFYA currently has a PEG ratio of 1.03.
Another notable valuation metric for LRN is its P/B ratio of 1.84. 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, AFYA has a P/B of 3.86.
These metrics, and several others, help LRN earn a Value grade of A, while AFYA has been given a Value grade of C.
LRN has seen stronger estimate revision activity and sports more attractive valuation metrics than AFYA, so it seems like value investors will conclude that LRN is the superior option right now.
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LRN vs. AFYA: Which Stock Is the Better Value Option?
Investors interested in Schools stocks are likely familiar with K12 (LRN - Free Report) and Afya (AFYA - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, K12 has a Zacks Rank of #1 (Strong Buy), while Afya 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 LRN has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
LRN currently has a forward P/E ratio of 17.63, while AFYA has a forward P/E of 25.38. We also note that LRN has a PEG ratio of 0.88. 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. AFYA currently has a PEG ratio of 1.03.
Another notable valuation metric for LRN is its P/B ratio of 1.84. 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, AFYA has a P/B of 3.86.
These metrics, and several others, help LRN earn a Value grade of A, while AFYA has been given a Value grade of C.
LRN has seen stronger estimate revision activity and sports more attractive valuation metrics than AFYA, so it seems like value investors will conclude that LRN is the superior option right now.