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ASAZY or SSTI: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Security and Safety Services sector have probably already heard of Assa Abloy AB (ASAZY - Free Report) and SoundThinking (SSTI - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Assa Abloy AB has a Zacks Rank of #2 (Buy), while SoundThinking has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ASAZY likely has seen a stronger improvement to its earnings outlook than SSTI has recently. But this is just one factor that value investors are interested in.

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.

ASAZY currently has a forward P/E ratio of 20.14, while SSTI has a forward P/E of 1,334.67. We also note that ASAZY has a PEG ratio of 1.96. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SSTI currently has a PEG ratio of 66.73.

Another notable valuation metric for ASAZY is its P/B ratio of 3.41. 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, SSTI has a P/B of 3.59.

These are just a few of the metrics contributing to ASAZY's Value grade of B and SSTI's Value grade of D.

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


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