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ADT or AXON: Which Is the Better Value Stock Right Now?
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Investors with an interest in Security and Safety Services stocks have likely encountered both ADT (ADT - Free Report) and Axon Enterprise (AXON - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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, both ADT and Axon Enterprise are holding 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. But this is just one factor that value investors are interested in.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ADT currently has a forward P/E ratio of 9.29, while AXON has a forward P/E of 140.18. We also note that ADT has a PEG ratio of 1.15. 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. AXON currently has a PEG ratio of 9.35.
Another notable valuation metric for ADT is its P/B ratio of 2.27. 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, AXON has a P/B of 12.95.
These are just a few of the metrics contributing to ADT's Value grade of A and AXON's Value grade of F.
Both ADT and AXON are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ADT is the superior value option right now.
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ADT or AXON: Which Is the Better Value Stock Right Now?
Investors with an interest in Security and Safety Services stocks have likely encountered both ADT (ADT - Free Report) and Axon Enterprise (AXON - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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, both ADT and Axon Enterprise are holding 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. But this is just one factor that value investors are interested in.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ADT currently has a forward P/E ratio of 9.29, while AXON has a forward P/E of 140.18. We also note that ADT has a PEG ratio of 1.15. 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. AXON currently has a PEG ratio of 9.35.
Another notable valuation metric for ADT is its P/B ratio of 2.27. 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, AXON has a P/B of 12.95.
These are just a few of the metrics contributing to ADT's Value grade of A and AXON's Value grade of F.
Both ADT and AXON are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ADT is the superior value option right now.