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VRTS vs. APO: Which Stock Is the Better Value Option?

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Investors interested in Financial - Investment Management stocks are likely familiar with Virtus Investment Partners (VRTS - Free Report) and Apollo Global Management, LLC (APO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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.

Virtus Investment Partners and Apollo Global Management, LLC are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that VRTS likely has seen a stronger improvement to its earnings outlook than APO has recently. 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 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.

VRTS currently has a forward P/E ratio of 8.24, while APO has a forward P/E of 18.92. We also note that VRTS has a PEG ratio of 1.24. 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. APO currently has a PEG ratio of 1.34.

Another notable valuation metric for VRTS is its P/B ratio of 1.44. 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, APO has a P/B of 4.30.

Based on these metrics and many more, VRTS holds a Value grade of B, while APO has a Value grade of C.

VRTS sticks out from APO in both our Zacks Rank and Style Scores models, so value investors will likely feel that VRTS is the better option right now.


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Virtus Investment Partners, Inc. (VRTS) - free report >>

Apollo Global Management Inc. (APO) - free report >>

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