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MS vs. TW: Which Stock Is the Better Value Option?
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Investors interested in Financial - Investment Bank stocks are likely familiar with Morgan Stanley (MS - Free Report) and Tradeweb Markets (TW - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
Morgan Stanley and Tradeweb Markets are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that MS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
MS currently has a forward P/E ratio of 12.19, while TW has a forward P/E of 54.07. We also note that MS has a PEG ratio of 1.80. 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 4.08.
Another notable valuation metric for MS is its P/B ratio of 1.61. 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 3.82.
Based on these metrics and many more, MS holds a Value grade of B, while TW has a Value grade of D.
MS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that MS is likely the superior value option right now.
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MS vs. TW: Which Stock Is the Better Value Option?
Investors interested in Financial - Investment Bank stocks are likely familiar with Morgan Stanley (MS - Free Report) and Tradeweb Markets (TW - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
Morgan Stanley and Tradeweb Markets are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that MS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
MS currently has a forward P/E ratio of 12.19, while TW has a forward P/E of 54.07. We also note that MS has a PEG ratio of 1.80. 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 4.08.
Another notable valuation metric for MS is its P/B ratio of 1.61. 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 3.82.
Based on these metrics and many more, MS holds a Value grade of B, while TW has a Value grade of D.
MS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that MS is likely the superior value option right now.