We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AMG vs. FOCS: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors looking for stocks in the Financial - Investment Management sector might want to consider either Affiliated Managers Group (AMG - Free Report) or Focus Financial Partners Inc. . 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 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.
Affiliated Managers Group and Focus Financial Partners Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AMG is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
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.
AMG currently has a forward P/E ratio of 7.90, while FOCS has a forward P/E of 14.81. We also note that AMG has a PEG ratio of 0.53. 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. FOCS currently has a PEG ratio of 0.91.
Another notable valuation metric for AMG is its P/B ratio of 1.53. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, FOCS has a P/B of 4.32.
Based on these metrics and many more, AMG holds a Value grade of A, while FOCS has a Value grade of C.
AMG sticks out from FOCS in both our Zacks Rank and Style Scores models, so value investors will likely feel that AMG is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AMG vs. FOCS: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Financial - Investment Management sector might want to consider either Affiliated Managers Group (AMG - Free Report) or Focus Financial Partners Inc. . 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 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.
Affiliated Managers Group and Focus Financial Partners Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AMG is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
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.
AMG currently has a forward P/E ratio of 7.90, while FOCS has a forward P/E of 14.81. We also note that AMG has a PEG ratio of 0.53. 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. FOCS currently has a PEG ratio of 0.91.
Another notable valuation metric for AMG is its P/B ratio of 1.53. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, FOCS has a P/B of 4.32.
Based on these metrics and many more, AMG holds a Value grade of A, while FOCS has a Value grade of C.
AMG sticks out from FOCS in both our Zacks Rank and Style Scores models, so value investors will likely feel that AMG is the better option right now.