Investors with an interest in Financial - Investment Management stocks have likely encountered both AllianceBernstein (AB) and Cronos Group (CRON). But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Right now, AllianceBernstein is sporting a Zacks Rank of #2 (Buy), while Cronos Group has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that AB likely has seen a stronger improvement to its earnings outlook than CRON has recently. But this is only part of the picture for value investors.
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.
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.
AB currently has a forward P/E ratio of 12.33, while CRON has a forward P/E of 1,181.28. We also note that AB has a PEG ratio of 3.09. 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. CRON currently has a PEG ratio of 25.45.
Another notable valuation metric for AB is its P/B ratio of 1.94. 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, CRON has a P/B of 17.24.
These are just a few of the metrics contributing to AB's Value grade of B and CRON's Value grade of F.
AB stands above CRON thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AB is the superior value option right now.
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AllianceBernstein Holding L.P. (AB) : Free Stock Analysis Report
Cronos Group Inc. (CRON) : Free Stock Analysis Report
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