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AXS vs. BRK.B: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of Axis Capital (AXS - Free Report) and Berkshire Hathaway B (BRK.B - 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.
Axis Capital and Berkshire Hathaway B are both sporting a Zacks Rank of # 2 (Buy) right now. 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 only part of the picture for value investors.
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.
AXS currently has a forward P/E ratio of 6.56, while BRK.B has a forward P/E of 21.55. We also note that AXS has a PEG ratio of 1.31. 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. BRK.B currently has a PEG ratio of 3.08.
Another notable valuation metric for AXS is its P/B ratio of 1.07. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, BRK.B has a P/B of 1.44.
These metrics, and several others, help AXS earn a Value grade of A, while BRK.B has been given a Value grade of C.
Both AXS and BRK.B are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AXS is the superior value option right now.
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AXS vs. BRK.B: Which Stock Is the Better Value Option?
Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of Axis Capital (AXS - Free Report) and Berkshire Hathaway B (BRK.B - 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.
Axis Capital and Berkshire Hathaway B are both sporting a Zacks Rank of # 2 (Buy) right now. 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 only part of the picture for value investors.
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.
AXS currently has a forward P/E ratio of 6.56, while BRK.B has a forward P/E of 21.55. We also note that AXS has a PEG ratio of 1.31. 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. BRK.B currently has a PEG ratio of 3.08.
Another notable valuation metric for AXS is its P/B ratio of 1.07. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, BRK.B has a P/B of 1.44.
These metrics, and several others, help AXS earn a Value grade of A, while BRK.B has been given a Value grade of C.
Both AXS and BRK.B are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AXS is the superior value option right now.