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ALLE vs. AXON: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Security and Safety Services sector have probably already heard of Allegion (ALLE - Free Report) and Axon Enterprise (AXON - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Allegion has a Zacks Rank of #2 (Buy), while Axon Enterprise has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ALLE has an improving earnings outlook. But this is only part of the picture for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ALLE currently has a forward P/E ratio of 18.96, while AXON has a forward P/E of 119.54. We also note that ALLE has a PEG ratio of 3.35. 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. AXON currently has a PEG ratio of 4.01.
Another notable valuation metric for ALLE is its P/B ratio of 7.77. 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, AXON has a P/B of 22.75.
These metrics, and several others, help ALLE earn a Value grade of B, while AXON has been given a Value grade of F.
ALLE has seen stronger estimate revision activity and sports more attractive valuation metrics than AXON, so it seems like value investors will conclude that ALLE is the superior option right now.
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ALLE vs. AXON: Which Stock Is the Better Value Option?
Investors interested in stocks from the Security and Safety Services sector have probably already heard of Allegion (ALLE - Free Report) and Axon Enterprise (AXON - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Allegion has a Zacks Rank of #2 (Buy), while Axon Enterprise has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ALLE has an improving earnings outlook. But this is only part of the picture for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ALLE currently has a forward P/E ratio of 18.96, while AXON has a forward P/E of 119.54. We also note that ALLE has a PEG ratio of 3.35. 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. AXON currently has a PEG ratio of 4.01.
Another notable valuation metric for ALLE is its P/B ratio of 7.77. 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, AXON has a P/B of 22.75.
These metrics, and several others, help ALLE earn a Value grade of B, while AXON has been given a Value grade of F.
ALLE has seen stronger estimate revision activity and sports more attractive valuation metrics than AXON, so it seems like value investors will conclude that ALLE is the superior option right now.