Yahoo Finance BRC vs. ALLE: Which Stock Is the Better Value Option?
Investors interested in stocks from the Security and Safety Services sector have probably already heard of Brady (BRC) and Allegion (ALLE). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both Brady and Allegion have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.
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.
BRC currently has a forward P/E ratio of 16.08, while ALLE has a forward P/E of 16.52. We also note that BRC has a PEG ratio of 2.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ALLE currently has a PEG ratio of 3.68.
Another notable valuation metric for BRC is its P/B ratio of 3.08. 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, ALLE has a P/B of 7.57.
These are just a few of the metrics contributing to BRC's Value grade of B and ALLE's Value grade of C.
Both BRC and ALLE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BRC is the superior value option right now.
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Brady Corporation (BRC) : Free Stock Analysis Report
Allegion PLC (ALLE) : Free Stock Analysis Report
