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AB vs. SEIC: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Financial - Investment Management sector might want to consider either AllianceBernstein (AB - Free Report) or SEI Investments (SEIC - 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.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, both AllianceBernstein and SEI Investments are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.

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.

AB currently has a forward P/E ratio of 10.94, while SEIC has a forward P/E of 16.32. We also note that AB has a PEG ratio of 0.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SEIC currently has a PEG ratio of 1.36.

Another notable valuation metric for AB is its P/B ratio of 1.85. 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, SEIC has a P/B of 4.11.

These are just a few of the metrics contributing to AB's Value grade of B and SEIC's Value grade of C.

Both AB and SEIC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AB is the superior value option right now.


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AllianceBernstein Holding L.P. (AB) - free report >>

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