Yahoo Finance ASAZY or VRRM: Which Is the Better Value Stock Right Now?
Investors with an interest in Security and Safety Services stocks have likely encountered both Assa Abloy AB (ASAZY) and VERRA MOBILITY CORP (VRRM). 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Assa Abloy AB and VERRA MOBILITY CORP 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 ASAZY is likely seeing its earnings outlook improve to a greater extent. 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.
ASAZY currently has a forward P/E ratio of 20.96, while VRRM has a forward P/E of 22.06. We also note that ASAZY has a PEG ratio of 1.49. 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. VRRM currently has a PEG ratio of 1.62.
Another notable valuation metric for ASAZY is its P/B ratio of 3.71. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, VRRM has a P/B of 9.74.
Based on these metrics and many more, ASAZY holds a Value grade of B, while VRRM has a Value grade of C.
ASAZY stands above VRRM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ASAZY is the superior value option right now.
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Assa Abloy AB (ASAZY) : Free Stock Analysis Report
VERRA MOBILITY CORP (VRRM) : Free Stock Analysis Report
