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APG or SGSOY: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Business - Services sector might want to consider either APi (APG - Free Report) or SGS SA (SGSOY - Free Report) . 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

APi has a Zacks Rank of #2 (Buy), while SGS SA has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that APG has an improving earnings outlook. However, value investors will care about much more than just this.

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 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.

APG currently has a forward P/E ratio of 18.72, while SGSOY has a forward P/E of 22.29. We also note that APG has a PEG ratio of 1.06. 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. SGSOY currently has a PEG ratio of 3.74.

Another notable valuation metric for APG is its P/B ratio of 2.97. 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, SGSOY has a P/B of 21.93.

These are just a few of the metrics contributing to APG's Value grade of B and SGSOY's Value grade of C.

APG stands above SGSOY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that APG is the superior value option right now.


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