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Mast Global Battery Recycling & Production ETF (EV) - free report >>
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JHG or EV: Which Is the Better Value Stock Right Now?
Investors interested in Financial - Investment Management stocks are likely familiar with Janus Henderson Group plc (JHG - Free Report) and Eaton Vance (EV - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Janus Henderson Group plc and Eaton Vance are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that JHG's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 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.
JHG currently has a forward P/E ratio of 8.63, while EV has a forward P/E of 19.56. We also note that JHG has a PEG ratio of 0.99. 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. EV currently has a PEG ratio of 1.44.
Another notable valuation metric for JHG is its P/B ratio of 1.14. 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, EV has a P/B of 6.17.
These metrics, and several others, help JHG earn a Value grade of B, while EV has been given a Value grade of C.
JHG sticks out from EV in both our Zacks Rank and Style Scores models, so value investors will likely feel that JHG is the better option right now.