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AEG vs. PUK: Which Stock Is the Better Value Option?

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Investors interested in Insurance - Multi line stocks are likely familiar with Aegon NV (AEG - Free Report) and Prudential (PUK - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Aegon NV and Prudential are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AEG 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

AEG currently has a forward P/E ratio of 6.86, while PUK has a forward P/E of 13.84. We also note that AEG has a PEG ratio of 0.21. 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. PUK currently has a PEG ratio of 0.82.

Another notable valuation metric for AEG is its P/B ratio of 1.48. 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, PUK has a P/B of 1.91.

These are just a few of the metrics contributing to AEG's Value grade of B and PUK's Value grade of C.

AEG stands above PUK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AEG is the superior value option right now.


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