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AGESY vs. BBSEY: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Insurance - Multi line sector have probably already heard of Ageas SA (AGESY - Free Report) and BB Seguridade Participacoes SA (BBSEY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Ageas SA has a Zacks Rank of #2 (Buy), while BB Seguridade Participacoes SA has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AGESY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

AGESY currently has a forward P/E ratio of 9.27, while BBSEY has a forward P/E of 50. We also note that AGESY has a PEG ratio of 1.30. 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. BBSEY currently has a PEG ratio of 3.14.

Another notable valuation metric for AGESY is its P/B ratio of 0.58. 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, BBSEY has a P/B of 8.39.

Based on these metrics and many more, AGESY holds a Value grade of A, while BBSEY has a Value grade of C.

AGESY stands above BBSEY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AGESY is the superior value option right now.


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