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ASAZY vs. ALRM: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Security and Safety Services sector might want to consider either Assa Abloy AB (ASAZY - Free Report) or Alarm.com Holdings (ALRM - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Assa Abloy AB is sporting a Zacks Rank of #2 (Buy), while Alarm.com Holdings has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ASAZY has an improving earnings outlook. 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.
ASAZY currently has a forward P/E ratio of 20.78, while ALRM has a forward P/E of 34.08. We also note that ASAZY has a PEG ratio of 1.51. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ALRM currently has a PEG ratio of 2.68.
Another notable valuation metric for ASAZY is its P/B ratio of 3.66. 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, ALRM has a P/B of 5.30.
These metrics, and several others, help ASAZY earn a Value grade of B, while ALRM has been given a Value grade of D.
ASAZY stands above ALRM 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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ASAZY vs. ALRM: Which Stock Is the Better Value Option?
Investors looking for stocks in the Security and Safety Services sector might want to consider either Assa Abloy AB (ASAZY - Free Report) or Alarm.com Holdings (ALRM - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Assa Abloy AB is sporting a Zacks Rank of #2 (Buy), while Alarm.com Holdings has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ASAZY has an improving earnings outlook. 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.
ASAZY currently has a forward P/E ratio of 20.78, while ALRM has a forward P/E of 34.08. We also note that ASAZY has a PEG ratio of 1.51. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ALRM currently has a PEG ratio of 2.68.
Another notable valuation metric for ASAZY is its P/B ratio of 3.66. 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, ALRM has a P/B of 5.30.
These metrics, and several others, help ASAZY earn a Value grade of B, while ALRM has been given a Value grade of D.
ASAZY stands above ALRM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ASAZY is the superior value option right now.