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APG or SGSOY: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Business - Services sector have probably already heard of APi (APG - Free Report) and SGS SA (SGSOY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, APi has a Zacks Rank of #1 (Strong Buy), while SGS SA has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that APG is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

APG currently has a forward P/E ratio of 14.40, while SGSOY has a forward P/E of 23.03. We also note that APG has a PEG ratio of 0.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SGSOY currently has a PEG ratio of 3.53.

Another notable valuation metric for APG is its P/B ratio of 2.36. 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, SGSOY has a P/B of 22.13.

Based on these metrics and many more, APG holds a Value grade of B, while SGSOY has a Value grade of C.

APG sticks out from SGSOY in both our Zacks Rank and Style Scores models, so value investors will likely feel that APG is the better option right now.


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