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AXS vs. BRK.B: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of Axis Capital (AXS - Free Report) and Berkshire Hathaway B (BRK.B - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Axis Capital is sporting a Zacks Rank of #2 (Buy), while Berkshire Hathaway B has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AXS has an improving earnings outlook. But this is just one piece of the puzzle 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 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.
AXS currently has a forward P/E ratio of 9.45, while BRK.B has a forward P/E of 24.70. We also note that AXS has a PEG ratio of 1.89. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BRK.B currently has a PEG ratio of 3.53.
Another notable valuation metric for AXS is its P/B ratio of 1.06. 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, BRK.B has a P/B of 1.38.
These are just a few of the metrics contributing to AXS's Value grade of A and BRK.B's Value grade of C.
AXS sticks out from BRK.B in both our Zacks Rank and Style Scores models, so value investors will likely feel that AXS is the better option right now.
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AXS vs. BRK.B: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of Axis Capital (AXS - Free Report) and Berkshire Hathaway B (BRK.B - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Axis Capital is sporting a Zacks Rank of #2 (Buy), while Berkshire Hathaway B has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AXS has an improving earnings outlook. But this is just one piece of the puzzle 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 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.
AXS currently has a forward P/E ratio of 9.45, while BRK.B has a forward P/E of 24.70. We also note that AXS has a PEG ratio of 1.89. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BRK.B currently has a PEG ratio of 3.53.
Another notable valuation metric for AXS is its P/B ratio of 1.06. 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, BRK.B has a P/B of 1.38.
These are just a few of the metrics contributing to AXS's Value grade of A and BRK.B's Value grade of C.
AXS sticks out from BRK.B in both our Zacks Rank and Style Scores models, so value investors will likely feel that AXS is the better option right now.