Yahoo Finance APG or ULS: Which Is the Better Value Stock Right Now?
Investors interested in Business - Services stocks are likely familiar with APi (APG) and UL Solutions Inc. (ULS). 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, APi has a Zacks Rank of #2 (Buy), while UL Solutions Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that APG is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
APG currently has a forward P/E ratio of 19.54, while ULS has a forward P/E of 29.67. We also note that APG has a PEG ratio of 1.07. 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. ULS currently has a PEG ratio of 6.79.
Another notable valuation metric for APG is its P/B ratio of 4.38. 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, ULS has a P/B of 12.61.
Based on these metrics and many more, APG holds a Value grade of B, while ULS has a Value grade of C.
APG has seen stronger estimate revision activity and sports more attractive valuation metrics than ULS, so it seems like value investors will conclude that APG is the superior option right now.
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APi Group Corporation (APG) : Free Stock Analysis Report
UL Solutions Inc. (ULS) : Free Stock Analysis Report
