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AXS vs. BRK.B: Which Stock Is the Better Value Option?
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Investors interested in Insurance - Property and Casualty stocks are likely familiar with Axis Capital (AXS - Free Report) and Berkshire Hathaway B (BRK.B - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Axis Capital has a Zacks Rank of #2 (Buy), while Berkshire Hathaway B has a Zacks Rank of #3 (Hold). This means that AXS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
AXS currently has a forward P/E ratio of 5.99, while BRK.B has a forward P/E of 21.93. We also note that AXS has a PEG ratio of 1.20. 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. BRK.B currently has a PEG ratio of 3.13.
Another notable valuation metric for AXS is its P/B ratio of 1.14. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BRK.B has a P/B of 1.62.
These metrics, and several others, help AXS earn a Value grade of A, while BRK.B has been given a Value grade of D.
AXS stands above BRK.B thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AXS is the superior value option right now.
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AXS vs. BRK.B: Which Stock Is the Better Value Option?
Investors interested in Insurance - Property and Casualty stocks are likely familiar with Axis Capital (AXS - Free Report) and Berkshire Hathaway B (BRK.B - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Axis Capital has a Zacks Rank of #2 (Buy), while Berkshire Hathaway B has a Zacks Rank of #3 (Hold). This means that AXS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
AXS currently has a forward P/E ratio of 5.99, while BRK.B has a forward P/E of 21.93. We also note that AXS has a PEG ratio of 1.20. 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. BRK.B currently has a PEG ratio of 3.13.
Another notable valuation metric for AXS is its P/B ratio of 1.14. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BRK.B has a P/B of 1.62.
These metrics, and several others, help AXS earn a Value grade of A, while BRK.B has been given a Value grade of D.
AXS stands above BRK.B thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AXS is the superior value option right now.