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VCTR vs. APAM: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Financial - Investment Management sector have probably already heard of Victory Capital Holdings (VCTR - Free Report) and Artisan Partners Asset Management (APAM - 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Victory Capital Holdings and Artisan Partners Asset Management have 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 just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
VCTR currently has a forward P/E ratio of 4.55, while APAM has a forward P/E of 12.33. We also note that VCTR has a PEG ratio of 0.24. 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. APAM currently has a PEG ratio of 1.09.
Another notable valuation metric for VCTR is its P/B ratio of 1.82. 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, APAM has a P/B of 23.02.
Based on these metrics and many more, VCTR holds a Value grade of A, while APAM has a Value grade of C.
Both VCTR and APAM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that VCTR is the superior value option right now.
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VCTR vs. APAM: Which Stock Is the Better Value Option?
Investors interested in stocks from the Financial - Investment Management sector have probably already heard of Victory Capital Holdings (VCTR - Free Report) and Artisan Partners Asset Management (APAM - 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Victory Capital Holdings and Artisan Partners Asset Management have 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 just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
VCTR currently has a forward P/E ratio of 4.55, while APAM has a forward P/E of 12.33. We also note that VCTR has a PEG ratio of 0.24. 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. APAM currently has a PEG ratio of 1.09.
Another notable valuation metric for VCTR is its P/B ratio of 1.82. 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, APAM has a P/B of 23.02.
Based on these metrics and many more, VCTR holds a Value grade of A, while APAM has a Value grade of C.
Both VCTR and APAM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that VCTR is the superior value option right now.