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AGESY or RDN: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Insurance - Multi line sector have probably already heard of Ageas SA (AGESY - Free Report) and Radian (RDN - 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Both Ageas SA and Radian have a Zacks Rank of # 2 (Buy) right now. 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. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

AGESY currently has a forward P/E ratio of 6.31, while RDN has a forward P/E of 9.51. We also note that AGESY has a PEG ratio of 0.36. 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. RDN currently has a PEG ratio of 1.90.

Another notable valuation metric for AGESY is its P/B ratio of 1.08. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, RDN has a P/B of 1.20.

These metrics, and several others, help AGESY earn a Value grade of A, while RDN has been given a Value grade of C.

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


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Radian Group Inc. (RDN) - free report >>

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