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ASAZY vs. VRRM: Which Stock Is the Better Value Option?

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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 VERRA MOBILITY CORP (VRRM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Assa Abloy AB and VERRA MOBILITY CORP are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that ASAZY likely has seen a stronger improvement to its earnings outlook than VRRM has recently. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

ASAZY currently has a forward P/E ratio of 20.92, while VRRM has a forward P/E of 21.59. We also note that ASAZY has a PEG ratio of 1.49. 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. VRRM currently has a PEG ratio of 1.74.

Another notable valuation metric for ASAZY is its P/B ratio of 3.70. 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, VRRM has a P/B of 9.90.

These metrics, and several others, help ASAZY earn a Value grade of B, while VRRM has been given a Value grade of D.

ASAZY has seen stronger estimate revision activity and sports more attractive valuation metrics than VRRM, so it seems like value investors will conclude that ASAZY is the superior option right now.


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Assa Abloy AB (ASAZY) - free report >>

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