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IX or VIRT: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either Orix (IX - Free Report) or Virtu Financial (VIRT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Orix has a Zacks Rank of #2 (Buy), while Virtu Financial has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that IX likely has seen a stronger improvement to its earnings outlook than VIRT 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.
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.
IX currently has a forward P/E ratio of 7.38, while VIRT has a forward P/E of 13.10. We also note that IX has a PEG ratio of 1.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VIRT currently has a PEG ratio of 2.62.
Another notable valuation metric for IX is its P/B ratio of 0.86. 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, VIRT has a P/B of 3.30.
These are just a few of the metrics contributing to IX's Value grade of A and VIRT's Value grade of F.
IX has seen stronger estimate revision activity and sports more attractive valuation metrics than VIRT, so it seems like value investors will conclude that IX is the superior option right now.
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IX or VIRT: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either Orix (IX - Free Report) or Virtu Financial (VIRT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Orix has a Zacks Rank of #2 (Buy), while Virtu Financial has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that IX likely has seen a stronger improvement to its earnings outlook than VIRT 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.
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.
IX currently has a forward P/E ratio of 7.38, while VIRT has a forward P/E of 13.10. We also note that IX has a PEG ratio of 1.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VIRT currently has a PEG ratio of 2.62.
Another notable valuation metric for IX is its P/B ratio of 0.86. 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, VIRT has a P/B of 3.30.
These are just a few of the metrics contributing to IX's Value grade of A and VIRT's Value grade of F.
IX has seen stronger estimate revision activity and sports more attractive valuation metrics than VIRT, so it seems like value investors will conclude that IX is the superior option right now.