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NOAH vs. TROW: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Financial - Investment Management sector might want to consider either Noah Holdings (NOAH - Free Report) or T. Rowe Price (TROW - 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.
Noah Holdings and T. Rowe Price 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 NOAH is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
NOAH currently has a forward P/E ratio of 5.81, while TROW has a forward P/E of 12.38. We also note that NOAH has a PEG ratio of 0.48. 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. TROW currently has a PEG ratio of 2.09.
Another notable valuation metric for NOAH is its P/B ratio of 1.05. 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, TROW has a P/B of 3.54.
These are just a few of the metrics contributing to NOAH's Value grade of A and TROW's Value grade of C.
NOAH has seen stronger estimate revision activity and sports more attractive valuation metrics than TROW, so it seems like value investors will conclude that NOAH is the superior option right now.
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NOAH vs. TROW: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Financial - Investment Management sector might want to consider either Noah Holdings (NOAH - Free Report) or T. Rowe Price (TROW - 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.
Noah Holdings and T. Rowe Price 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 NOAH is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
NOAH currently has a forward P/E ratio of 5.81, while TROW has a forward P/E of 12.38. We also note that NOAH has a PEG ratio of 0.48. 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. TROW currently has a PEG ratio of 2.09.
Another notable valuation metric for NOAH is its P/B ratio of 1.05. 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, TROW has a P/B of 3.54.
These are just a few of the metrics contributing to NOAH's Value grade of A and TROW's Value grade of C.
NOAH has seen stronger estimate revision activity and sports more attractive valuation metrics than TROW, so it seems like value investors will conclude that NOAH is the superior option right now.