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AXP vs. BAM: Which Stock Is the Better Value Option?
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Investors with an interest in Financial - Miscellaneous Services stocks have likely encountered both American Express (AXP - Free Report) and Brookfield Asset Management (BAM - 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.
Currently, American Express has a Zacks Rank of #2 (Buy), while Brookfield Asset Management has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that AXP likely has seen a stronger improvement to its earnings outlook than BAM has recently. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
AXP currently has a forward P/E ratio of 14.92, while BAM has a forward P/E of 25.95. We also note that AXP has a PEG ratio of 1.04. 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. BAM currently has a PEG ratio of 2.13.
Another notable valuation metric for AXP is its P/B ratio of 4.96. 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, BAM has a P/B of 7.54.
These metrics, and several others, help AXP earn a Value grade of B, while BAM has been given a Value grade of F.
AXP is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that AXP is likely the superior value option right now.
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AXP vs. BAM: Which Stock Is the Better Value Option?
Investors with an interest in Financial - Miscellaneous Services stocks have likely encountered both American Express (AXP - Free Report) and Brookfield Asset Management (BAM - 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.
Currently, American Express has a Zacks Rank of #2 (Buy), while Brookfield Asset Management has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that AXP likely has seen a stronger improvement to its earnings outlook than BAM has recently. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
AXP currently has a forward P/E ratio of 14.92, while BAM has a forward P/E of 25.95. We also note that AXP has a PEG ratio of 1.04. 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. BAM currently has a PEG ratio of 2.13.
Another notable valuation metric for AXP is its P/B ratio of 4.96. 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, BAM has a P/B of 7.54.
These metrics, and several others, help AXP earn a Value grade of B, while BAM has been given a Value grade of F.
AXP is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that AXP is likely the superior value option right now.