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AXAHY vs. PUK: Which Stock Is the Better Value Option?

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Investors with an interest in Insurance - Multi line stocks have likely encountered both Axa Sa (AXAHY - Free Report) and Prudential (PUK - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Axa Sa and Prudential are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that AXAHY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

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.

AXAHY currently has a forward P/E ratio of 8.88, while PUK has a forward P/E of 13.19. We also note that AXAHY has a PEG ratio of 1.17. 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. PUK currently has a PEG ratio of 1.47.

Another notable valuation metric for AXAHY is its P/B ratio of 1.31. 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, PUK has a P/B of 2.62.

These metrics, and several others, help AXAHY earn a Value grade of A, while PUK has been given a Value grade of C.

AXAHY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that AXAHY is likely the superior value option right now.


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