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APG vs. AFRM: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Business - Services stocks have likely encountered both APi (APG - Free Report) and Affirm Holdings (AFRM - 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.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, both APi and Affirm Holdings are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

APG currently has a forward P/E ratio of 20.13, while AFRM has a forward P/E of 95.46. We also note that APG has a PEG ratio of 1.10. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AFRM currently has a PEG ratio of 6.54.

Another notable valuation metric for APG is its P/B ratio of 3.32. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AFRM has a P/B of 4.64.

These are just a few of the metrics contributing to APG's Value grade of A and AFRM's Value grade of D.

Both APG and AFRM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that APG is the superior value option right now.


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