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AB vs. CNS: Which Stock Is the Better Value Option?
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Investors with an interest in Financial - Investment Management stocks have likely encountered both AllianceBernstein (AB - Free Report) and Cohen & Steers Inc (CNS - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
AllianceBernstein and Cohen & Steers Inc are both sporting a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.
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.
AB currently has a forward P/E ratio of 11.64, while CNS has a forward P/E of 22.17. We also note that AB has a PEG ratio of 1.21. 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. CNS currently has a PEG ratio of 1.78.
Another notable valuation metric for AB is its P/B ratio of 3.03. 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, CNS has a P/B of 6.19.
These are just a few of the metrics contributing to AB's Value grade of A and CNS's 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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AB vs. CNS: Which Stock Is the Better Value Option?
Investors with an interest in Financial - Investment Management stocks have likely encountered both AllianceBernstein (AB - Free Report) and Cohen & Steers Inc (CNS - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
AllianceBernstein and Cohen & Steers Inc are both sporting a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.
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.
AB currently has a forward P/E ratio of 11.64, while CNS has a forward P/E of 22.17. We also note that AB has a PEG ratio of 1.21. 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. CNS currently has a PEG ratio of 1.78.
Another notable valuation metric for AB is its P/B ratio of 3.03. 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, CNS has a P/B of 6.19.
These are just a few of the metrics contributing to AB's Value grade of A and CNS's 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.