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BRC or ALLE: 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 Brady (BRC - Free Report) and Allegion (ALLE - 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.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Brady has a Zacks Rank of #2 (Buy), while Allegion has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that BRC likely has seen a stronger improvement to its earnings outlook than ALLE has recently. But this is just one factor that value investors are interested in.

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.

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.

BRC currently has a forward P/E ratio of 15.23, while ALLE has a forward P/E of 18.88. We also note that BRC has a PEG ratio of 2.18. 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. ALLE currently has a PEG ratio of 3.67.

Another notable valuation metric for BRC is its P/B ratio of 2.96. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ALLE has a P/B of 9.05.

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

BRC sticks out from ALLE in both our Zacks Rank and Style Scores models, so value investors will likely feel that BRC is the better option right now.


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