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AXAHY or PUK: Which Is the Better Value Stock Right Now?

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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 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.

Right now, Axa Sa is sporting a Zacks Rank of #2 (Buy), while Prudential 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 AXAHY has an improving earnings outlook. But this is only part of the picture 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.

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.

AXAHY currently has a forward P/E ratio of 8.62, while PUK has a forward P/E of 12.71. We also note that AXAHY has a PEG ratio of 1.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PUK currently has a PEG ratio of 1.41.

Another notable valuation metric for AXAHY is its P/B ratio of 1.51. 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 2.36.

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

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


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