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AGESY 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 Ageas SA (AGESY - 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

Ageas SA and Prudential are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that AGESY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.

AGESY currently has a forward P/E ratio of 5.92, while PUK has a forward P/E of 13.10. We also note that AGESY has a PEG ratio of 0.42. 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. PUK currently has a PEG ratio of 1.46.

Another notable valuation metric for AGESY is its P/B ratio of 0.92. 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 1.76.

These are just a few of the metrics contributing to AGESY's Value grade of A and PUK's Value grade of C.

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


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