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ASAZY vs. SSTI: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Security and Safety Services sector might want to consider either Assa Abloy AB (ASAZY - Free Report) or SoundThinking (SSTI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.

Assa Abloy AB has a Zacks Rank of #2 (Buy), while SoundThinking has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that ASAZY likely has seen a stronger improvement to its earnings outlook than SSTI has recently. 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.

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.

ASAZY currently has a forward P/E ratio of 18.89, while SSTI has a forward P/E of 148.13. We also note that ASAZY has a PEG ratio of 2.12. 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. SSTI currently has a PEG ratio of 4.94.

Another notable valuation metric for ASAZY is its P/B ratio of 3.08. 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, SSTI has a P/B of 6.32.

Based on these metrics and many more, ASAZY holds a Value grade of B, while SSTI has a Value grade of D.

ASAZY sticks out from SSTI in both our Zacks Rank and Style Scores models, so value investors will likely feel that ASAZY is the better option right now.


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Assa Abloy AB (ASAZY) - free report >>

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