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ETOR or AON: Which Is the Better Value Stock Right Now?
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Investors interested in Insurance - Brokerage stocks are likely familiar with eToro Group Ltd. (ETOR - Free Report) and Aon (AON - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, eToro Group Ltd. has a Zacks Rank of #2 (Buy), while Aon has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ETOR has an improving earnings outlook. However, value investors will care about much more than just this.
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.
ETOR currently has a forward P/E ratio of 13.67, while AON has a forward P/E of 21.07. We also note that ETOR has a PEG ratio of 1.94. 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. AON currently has a PEG ratio of 2.04.
Another notable valuation metric for ETOR is its P/B ratio of 2.12. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AON has a P/B of 9.45.
These are just a few of the metrics contributing to ETOR's Value grade of A and AON's Value grade of D.
ETOR stands above AON thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ETOR is the superior value option right now.
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ETOR or AON: Which Is the Better Value Stock Right Now?
Investors interested in Insurance - Brokerage stocks are likely familiar with eToro Group Ltd. (ETOR - Free Report) and Aon (AON - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, eToro Group Ltd. has a Zacks Rank of #2 (Buy), while Aon has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ETOR has an improving earnings outlook. However, value investors will care about much more than just this.
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.
ETOR currently has a forward P/E ratio of 13.67, while AON has a forward P/E of 21.07. We also note that ETOR has a PEG ratio of 1.94. 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. AON currently has a PEG ratio of 2.04.
Another notable valuation metric for ETOR is its P/B ratio of 2.12. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AON has a P/B of 9.45.
These are just a few of the metrics contributing to ETOR's Value grade of A and AON's Value grade of D.
ETOR stands above AON thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ETOR is the superior value option right now.