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AB or APO: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Financial - Investment Management sector might want to consider either AllianceBernstein (AB - Free Report) or Apollo Global Management Inc. (APO - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Right now, AllianceBernstein is sporting a Zacks Rank of #2 (Buy), while Apollo Global Management Inc. has a Zacks Rank of #3 (Hold). This means that AB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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.
AB currently has a forward P/E ratio of 11.73, while APO has a forward P/E of 16.41. We also note that AB has a PEG ratio of 0.74. 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. APO currently has a PEG ratio of 0.96.
Another notable valuation metric for AB is its P/B ratio of 1.93. 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, APO has a P/B of 2.71.
These metrics, and several others, help AB earn a Value grade of B, while APO has been given a Value grade of C.
AB has seen stronger estimate revision activity and sports more attractive valuation metrics than APO, so it seems like value investors will conclude that AB is the superior option right now.
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AB or APO: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Financial - Investment Management sector might want to consider either AllianceBernstein (AB - Free Report) or Apollo Global Management Inc. (APO - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Right now, AllianceBernstein is sporting a Zacks Rank of #2 (Buy), while Apollo Global Management Inc. has a Zacks Rank of #3 (Hold). This means that AB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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.
AB currently has a forward P/E ratio of 11.73, while APO has a forward P/E of 16.41. We also note that AB has a PEG ratio of 0.74. 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. APO currently has a PEG ratio of 0.96.
Another notable valuation metric for AB is its P/B ratio of 1.93. 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, APO has a P/B of 2.71.
These metrics, and several others, help AB earn a Value grade of B, while APO has been given a Value grade of C.
AB has seen stronger estimate revision activity and sports more attractive valuation metrics than APO, so it seems like value investors will conclude that AB is the superior option right now.