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SCHW vs. TW: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Financial - Investment Bank sector might want to consider either The Charles Schwab Corporation (SCHW - Free Report) or Tradeweb Markets (TW - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
The Charles Schwab Corporation and Tradeweb Markets are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
SCHW currently has a forward P/E ratio of 18.28, while TW has a forward P/E of 43.60. We also note that SCHW has a PEG ratio of 0.78. 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. TW currently has a PEG ratio of 2.44.
Another notable valuation metric for SCHW is its P/B ratio of 2.99. 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, TW has a P/B of 3.69.
Based on these metrics and many more, SCHW holds a Value grade of B, while TW has a Value grade of F.
Both SCHW and TW are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SCHW is the superior value option right now.
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SCHW vs. TW: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Financial - Investment Bank sector might want to consider either The Charles Schwab Corporation (SCHW - Free Report) or Tradeweb Markets (TW - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
The Charles Schwab Corporation and Tradeweb Markets are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
SCHW currently has a forward P/E ratio of 18.28, while TW has a forward P/E of 43.60. We also note that SCHW has a PEG ratio of 0.78. 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. TW currently has a PEG ratio of 2.44.
Another notable valuation metric for SCHW is its P/B ratio of 2.99. 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, TW has a P/B of 3.69.
Based on these metrics and many more, SCHW holds a Value grade of B, while TW has a Value grade of F.
Both SCHW and TW are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SCHW is the superior value option right now.