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GL vs. MCO: Which Stock Should Value Investors Buy Now?
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Investors interested in Financial - Miscellaneous Services stocks are likely familiar with Globe Life (GL - Free Report) and Moody's (MCO - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Globe Life and Moody's are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GL has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 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.
GL currently has a forward P/E ratio of 10.51, while MCO has a forward P/E of 25.52. We also note that GL has a PEG ratio of 1.77. 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. MCO currently has a PEG ratio of 2.55.
Another notable valuation metric for GL is its P/B ratio of 1.11. 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, MCO has a P/B of 52.22.
These metrics, and several others, help GL earn a Value grade of B, while MCO has been given a Value grade of F.
GL has seen stronger estimate revision activity and sports more attractive valuation metrics than MCO, so it seems like value investors will conclude that GL is the superior option right now.
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GL vs. MCO: Which Stock Should Value Investors Buy Now?
Investors interested in Financial - Miscellaneous Services stocks are likely familiar with Globe Life (GL - Free Report) and Moody's (MCO - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Globe Life and Moody's are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GL has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 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.
GL currently has a forward P/E ratio of 10.51, while MCO has a forward P/E of 25.52. We also note that GL has a PEG ratio of 1.77. 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. MCO currently has a PEG ratio of 2.55.
Another notable valuation metric for GL is its P/B ratio of 1.11. 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, MCO has a P/B of 52.22.
These metrics, and several others, help GL earn a Value grade of B, while MCO has been given a Value grade of F.
GL has seen stronger estimate revision activity and sports more attractive valuation metrics than MCO, so it seems like value investors will conclude that GL is the superior option right now.