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BEN or TROW: Which Is the Better Value Stock Right Now?
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Investors interested in Financial - Investment Management stocks are likely familiar with Franklin Resources (BEN - Free Report) and T. Rowe Price (TROW - 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Franklin Resources has a Zacks Rank of #2 (Buy), while T. Rowe Price has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BEN is likely seeing its earnings outlook improve to a greater extent. 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
BEN currently has a forward P/E ratio of 10.08, while TROW has a forward P/E of 16.07. We also note that BEN has a PEG ratio of 0.69. 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. TROW currently has a PEG ratio of 1.26.
Another notable valuation metric for BEN is its P/B ratio of 1.38. 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, TROW has a P/B of 5.60.
These metrics, and several others, help BEN earn a Value grade of B, while TROW has been given a Value grade of C.
BEN stands above TROW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BEN is the superior value option right now.
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BEN or TROW: Which Is the Better Value Stock Right Now?
Investors interested in Financial - Investment Management stocks are likely familiar with Franklin Resources (BEN - Free Report) and T. Rowe Price (TROW - 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Franklin Resources has a Zacks Rank of #2 (Buy), while T. Rowe Price has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BEN is likely seeing its earnings outlook improve to a greater extent. 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
BEN currently has a forward P/E ratio of 10.08, while TROW has a forward P/E of 16.07. We also note that BEN has a PEG ratio of 0.69. 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. TROW currently has a PEG ratio of 1.26.
Another notable valuation metric for BEN is its P/B ratio of 1.38. 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, TROW has a P/B of 5.60.
These metrics, and several others, help BEN earn a Value grade of B, while TROW has been given a Value grade of C.
BEN stands above TROW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BEN is the superior value option right now.