We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ASAZY vs. ALRM: Which Stock Is the Better Value Option?
Read MoreHide Full Article
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
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.