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IVZ vs. BLK: 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 Invesco (IVZ - Free Report) and BlackRock (BLK - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Invesco has a Zacks Rank of #2 (Buy), while BlackRock has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that IVZ likely has seen a stronger improvement to its earnings outlook than BLK has recently. But this is just one piece of the puzzle 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.

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.

IVZ currently has a forward P/E ratio of 10.01, while BLK has a forward P/E of 23.83. We also note that IVZ has a PEG ratio of 0.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BLK currently has a PEG ratio of 2.34.

Another notable valuation metric for IVZ is its P/B ratio of 1.20. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, BLK has a P/B of 3.78.

Based on these metrics and many more, IVZ holds a Value grade of B, while BLK has a Value grade of D.

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


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