ASAZY or SSTI: Which Is the Better Value Stock Right Now?
Investors with an interest in Security and Safety Services stocks have likely encountered both Assa Abloy AB (ASAZY) and SoundThinking (SSTI). 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Assa Abloy AB has a Zacks Rank of #2 (Buy), while SoundThinking has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ASAZY has an improving earnings outlook. 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.
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.
ASAZY currently has a forward P/E ratio of 20.55, while SSTI has a forward P/E of 1,592. We also note that ASAZY has a PEG ratio of 2. 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. SSTI currently has a PEG ratio of 79.60.
Another notable valuation metric for ASAZY is its P/B ratio of 3.46. 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, SSTI has a P/B of 4.29.
Based on these metrics and many more, ASAZY holds a Value grade of B, while SSTI has a Value grade of D.
ASAZY has seen stronger estimate revision activity and sports more attractive valuation metrics than SSTI, so it seems like value investors will conclude that ASAZY is the superior option right now.
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Assa Abloy AB (ASAZY) : Free Stock Analysis Report
SoundThinking, Inc. (SSTI) : Free Stock Analysis Report
