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AGM or ZG: Which Is the Better Value Stock Right Now?
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Investors with an interest in Financial - Mortgage & Related Services stocks have likely encountered both 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Federal Agricultural Mortgage has a Zacks Rank of #2 (Buy), while Zillow Group has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that AGM likely has seen a stronger improvement to its earnings outlook than ZG has recently. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
AGM currently has a forward P/E ratio of 11.19, while ZG has a forward P/E of 49.90. We also note that AGM has a PEG ratio of 1.02. 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 1.62.
Another notable valuation metric for AGM is its P/B ratio of 1.9. 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, ZG has a P/B of 4.31.
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 or ZG: Which Is the Better Value Stock Right Now?
Investors with an interest in Financial - Mortgage & Related Services stocks have likely encountered both 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Federal Agricultural Mortgage has a Zacks Rank of #2 (Buy), while Zillow Group has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that AGM likely has seen a stronger improvement to its earnings outlook than ZG has recently. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
AGM currently has a forward P/E ratio of 11.19, while ZG has a forward P/E of 49.90. We also note that AGM has a PEG ratio of 1.02. 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 1.62.
Another notable valuation metric for AGM is its P/B ratio of 1.9. 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, ZG has a P/B of 4.31.
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.