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VCTR vs. TPG: Which Stock Is the Better Value Option?
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Investors with an interest in Financial - Investment Management stocks have likely encountered both Victory Capital Holdings (VCTR - Free Report) and TPG Inc. (TPG - 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.
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.
Right now, Victory Capital Holdings is sporting a Zacks Rank of #2 (Buy), while TPG Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that VCTR likely has seen a stronger improvement to its earnings outlook than TPG has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
VCTR currently has a forward P/E ratio of 9.68, while TPG has a forward P/E of 20.64. We also note that VCTR has a PEG ratio of 0.44. 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. TPG currently has a PEG ratio of 0.73.
Another notable valuation metric for VCTR is its P/B ratio of 3.10. 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, TPG has a P/B of 4.65.
These metrics, and several others, help VCTR earn a Value grade of B, while TPG has been given a Value grade of D.
VCTR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that VCTR is likely the superior value option right now.
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VCTR vs. TPG: Which Stock Is the Better Value Option?
Investors with an interest in Financial - Investment Management stocks have likely encountered both Victory Capital Holdings (VCTR - Free Report) and TPG Inc. (TPG - 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.
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.
Right now, Victory Capital Holdings is sporting a Zacks Rank of #2 (Buy), while TPG Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that VCTR likely has seen a stronger improvement to its earnings outlook than TPG has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
VCTR currently has a forward P/E ratio of 9.68, while TPG has a forward P/E of 20.64. We also note that VCTR has a PEG ratio of 0.44. 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. TPG currently has a PEG ratio of 0.73.
Another notable valuation metric for VCTR is its P/B ratio of 3.10. 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, TPG has a P/B of 4.65.
These metrics, and several others, help VCTR earn a Value grade of B, while TPG has been given a Value grade of D.
VCTR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that VCTR is likely the superior value option right now.