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AGM vs. ZG: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Financial - Mortgage & Related Services sector have probably already heard of Federal Agricultural Mortgage (AGM - Free Report) and Zillow Group (ZG - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Federal Agricultural Mortgage is sporting a Zacks Rank of #2 (Buy), while Zillow Group has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AGM is likely seeing its earnings outlook improve to a greater extent. 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
AGM currently has a forward P/E ratio of 10.79, while ZG has a forward P/E of 348.50. We also note that AGM has a PEG ratio of 1.54. 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. ZG currently has a PEG ratio of 12.87.
Another notable valuation metric for AGM is its P/B ratio of 1.82. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ZG has a P/B of 3.51.
These are just a few of the metrics contributing to AGM's Value grade of B and ZG's Value grade of F.
AGM has seen stronger estimate revision activity and sports more attractive valuation metrics than ZG, so it seems like value investors will conclude that AGM is the superior option right now.
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AGM vs. ZG: Which Stock Is the Better Value Option?
Investors interested in stocks from the Financial - Mortgage & Related Services sector have probably already heard of Federal Agricultural Mortgage (AGM - Free Report) and Zillow Group (ZG - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Federal Agricultural Mortgage is sporting a Zacks Rank of #2 (Buy), while Zillow Group has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AGM is likely seeing its earnings outlook improve to a greater extent. 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
AGM currently has a forward P/E ratio of 10.79, while ZG has a forward P/E of 348.50. We also note that AGM has a PEG ratio of 1.54. 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. ZG currently has a PEG ratio of 12.87.
Another notable valuation metric for AGM is its P/B ratio of 1.82. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ZG has a P/B of 3.51.
These are just a few of the metrics contributing to AGM's Value grade of B and ZG's Value grade of F.
AGM has seen stronger estimate revision activity and sports more attractive valuation metrics than ZG, so it seems like value investors will conclude that AGM is the superior option right now.