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ALLE vs. AXON: Which Stock Is the Better Value Option?
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Investors with an interest in Security and Safety Services stocks have likely encountered both Allegion (ALLE - Free Report) and Axon Enterprise (AXON - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both Allegion and Axon Enterprise are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
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.
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.
ALLE currently has a forward P/E ratio of 17.68, while AXON has a forward P/E of 75.18. We also note that ALLE has a PEG ratio of 3.94. 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. AXON currently has a PEG ratio of 3.99.
Another notable valuation metric for ALLE is its P/B ratio of 7.73. 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, AXON has a P/B of 13.66.
Based on these metrics and many more, ALLE holds a Value grade of B, while AXON has a Value grade of D.
Both ALLE and AXON are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ALLE is the superior value option right now.
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ALLE vs. AXON: Which Stock Is the Better Value Option?
Investors with an interest in Security and Safety Services stocks have likely encountered both Allegion (ALLE - Free Report) and Axon Enterprise (AXON - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both Allegion and Axon Enterprise are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
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.
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.
ALLE currently has a forward P/E ratio of 17.68, while AXON has a forward P/E of 75.18. We also note that ALLE has a PEG ratio of 3.94. 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. AXON currently has a PEG ratio of 3.99.
Another notable valuation metric for ALLE is its P/B ratio of 7.73. 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, AXON has a P/B of 13.66.
Based on these metrics and many more, ALLE holds a Value grade of B, while AXON has a Value grade of D.
Both ALLE and AXON are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ALLE is the superior value option right now.