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AB vs. CNS: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Financial - Investment Management sector might want to consider either AllianceBernstein (AB - Free Report) or Cohen & Steers Inc (CNS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, both AllianceBernstein and Cohen & Steers Inc are sporting a Zacks Rank of #2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.

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.

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.

AB currently has a forward P/E ratio of 11.53, while CNS has a forward P/E of 21.84. We also note that AB has a PEG ratio of 1.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CNS currently has a PEG ratio of 2.05.

Another notable valuation metric for AB is its P/B ratio of 2.14. 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, CNS has a P/B of 6.26.

These metrics, and several others, help AB earn a Value grade of A, while CNS has been given a Value grade of D.

Both AB and CNS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AB is the superior value option right now.


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AllianceBernstein Holding L.P. (AB) - free report >>

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