Back to top

Image: Bigstock

AGESY or AXAHY: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors with an interest in Insurance - Multi line stocks have likely encountered both Ageas SA (AGESY - Free Report) and Axa Sa (AXAHY - 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.

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.

Ageas SA has a Zacks Rank of #2 (Buy), while Axa Sa has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AGESY has an improving earnings outlook. But this is just one piece of the puzzle 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

AGESY currently has a forward P/E ratio of 8.30, while AXAHY has a forward P/E of 10.13. We also note that AGESY has a PEG ratio of 0.72. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AXAHY currently has a PEG ratio of 1.48.

Another notable valuation metric for AGESY is its P/B ratio of 1.31. 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, AXAHY has a P/B of 1.95.

These metrics, and several others, help AGESY earn a Value grade of A, while AXAHY has been given a Value grade of C.

AGESY has seen stronger estimate revision activity and sports more attractive valuation metrics than AXAHY, so it seems like value investors will conclude that AGESY is the superior option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Axa Sa (AXAHY) - free report >>

Ageas SA (AGESY) - free report >>

Published in