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AXAHY vs. PUK: Which Stock Is the Better Value Option?

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Investors with an interest in Insurance - Multi line stocks have likely encountered both Axa Sa (AXAHY - Free Report) and Prudential (PUK - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Axa Sa has a Zacks Rank of #2 (Buy), while Prudential has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that AXAHY likely has seen a stronger improvement to its earnings outlook than PUK has recently. However, value investors will care about much more than just this.

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.

AXAHY currently has a forward P/E ratio of 8.36, while PUK has a forward P/E of 12.31. We also note that AXAHY has a PEG ratio of 1.08. 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. PUK currently has a PEG ratio of 1.37.

Another notable valuation metric for AXAHY is its P/B ratio of 1.30. 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, PUK has a P/B of 2.28.

These metrics, and several others, help AXAHY earn a Value grade of A, while PUK has been given a Value grade of C.

AXAHY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that AXAHY is likely the superior value option right now.


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