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FHI vs. APO: Which Stock Is the Better Value Option?
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Investors with an interest in Financial - Investment Management stocks have likely encountered both Federated Hermes (FHI - Free Report) and Apollo Global Management Inc. (APO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Federated Hermes has a Zacks Rank of #2 (Buy), while Apollo Global Management Inc. has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that FHI likely has seen a stronger improvement to its earnings outlook than APO has recently. But this is only part of the picture 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.
FHI currently has a forward P/E ratio of 9.94, while APO has a forward P/E of 14.10. We also note that FHI has a PEG ratio of 0.59. 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. APO currently has a PEG ratio of 0.91.
Another notable valuation metric for FHI is its P/B ratio of 2.73. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, APO has a P/B of 3.80.
These are just a few of the metrics contributing to FHI's Value grade of B and APO's Value grade of D.
FHI has seen stronger estimate revision activity and sports more attractive valuation metrics than APO, so it seems like value investors will conclude that FHI is the superior option right now.
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FHI vs. APO: Which Stock Is the Better Value Option?
Investors with an interest in Financial - Investment Management stocks have likely encountered both Federated Hermes (FHI - Free Report) and Apollo Global Management Inc. (APO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Federated Hermes has a Zacks Rank of #2 (Buy), while Apollo Global Management Inc. has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that FHI likely has seen a stronger improvement to its earnings outlook than APO has recently. But this is only part of the picture 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.
FHI currently has a forward P/E ratio of 9.94, while APO has a forward P/E of 14.10. We also note that FHI has a PEG ratio of 0.59. 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. APO currently has a PEG ratio of 0.91.
Another notable valuation metric for FHI is its P/B ratio of 2.73. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, APO has a P/B of 3.80.
These are just a few of the metrics contributing to FHI's Value grade of B and APO's Value grade of D.
FHI has seen stronger estimate revision activity and sports more attractive valuation metrics than APO, so it seems like value investors will conclude that FHI is the superior option right now.