Back to top

Image: Bigstock

AXAHY vs. PUK: Which Stock Should Value Investors Buy Now?

Read MoreHide Full Article

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.

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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Axa Sa and Prudential are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that AXAHY likely has seen a stronger improvement to its earnings outlook than PUK has recently. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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 7.72, while PUK has a forward P/E of 12.46. We also note that AXAHY has a PEG ratio of 1. 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 1.38.

Another notable valuation metric for AXAHY is its P/B ratio of 1.35. 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, PUK has a P/B of 2.31.

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

AXAHY has seen stronger estimate revision activity and sports more attractive valuation metrics than PUK, so it seems like value investors will conclude that AXAHY is the superior option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Prudential Public Limited Company (PUK) - free report >>

Axa Sa (AXAHY) - free report >>

Published in