Yahoo Finance BRC or ALLE: Which Is the Better Value Stock Right Now?
Investors interested in Security and Safety Services stocks are likely familiar with Brady (BRC) and Allegion (ALLE). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both Brady and Allegion are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
BRC currently has a forward P/E ratio of 15.96, while ALLE has a forward P/E of 16.39. We also note that BRC has a PEG ratio of 2.07. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ALLE currently has a PEG ratio of 3.65.
Another notable valuation metric for BRC is its P/B ratio of 3.06. 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, ALLE has a P/B of 7.52.
These metrics, and several others, help BRC earn a Value grade of B, while ALLE has been given a Value grade of C.
Both BRC and ALLE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BRC is the superior value option right now.
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Brady Corporation (BRC) : Free Stock Analysis Report
Allegion PLC (ALLE) : Free Stock Analysis Report
