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APG vs. SGSOY: Which Stock Should Value Investors Buy 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 offers value investors a better bang for their buck right now? We'll need to 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.

Right now, APi is sporting a Zacks Rank of #2 (Buy), while SGS SA has a Zacks Rank of #3 (Hold). 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

APG currently has a forward P/E ratio of 18.61, while SGSOY has a forward P/E of 21.57. We also note that APG has a PEG ratio of 1.05. 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 3.62.

Another notable valuation metric for APG is its P/B ratio of 2.95. 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, SGSOY has a P/B of 21.21.

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

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


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