JMP or TW: Which Is the Better Value Stock Right Now?

TW

Investors with an interest in Financial - Investment Bank stocks have likely encountered both JMP and Tradeweb Markets (TW - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.

JMP and Tradeweb Markets are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have 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.

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.

JMP currently has a forward P/E ratio of 8.93, while TW has a forward P/E of 51.97. We also note that JMP has a PEG ratio of 0.89. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TW currently has a PEG ratio of 3.92.

Another notable valuation metric for JMP is its P/B ratio of 1.60. 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, TW has a P/B of 3.61.

Based on these metrics and many more, JMP holds a Value grade of A, while TW has a Value grade of F.

Both JMP and TW are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that JMP is the superior value option right now.

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