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SCHW vs. MKTX: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Financial - Investment Bank sector have probably already heard of The Charles Schwab Corporation (SCHW - Free Report) and MarketAxess (MKTX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
The Charles Schwab Corporation has a Zacks Rank of #2 (Buy), while MarketAxess has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SCHW is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.
SCHW currently has a forward P/E ratio of 18.66, while MKTX has a forward P/E of 28.15. We also note that SCHW has a PEG ratio of 0.97. 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. MKTX currently has a PEG ratio of 4.99.
Another notable valuation metric for SCHW is its P/B ratio of 3.58. 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, MKTX has a P/B of 5.89.
Based on these metrics and many more, SCHW holds a Value grade of B, while MKTX has a Value grade of F.
SCHW has seen stronger estimate revision activity and sports more attractive valuation metrics than MKTX, so it seems like value investors will conclude that SCHW is the superior option right now.
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SCHW vs. MKTX: Which Stock Is the Better Value Option?
Investors interested in stocks from the Financial - Investment Bank sector have probably already heard of The Charles Schwab Corporation (SCHW - Free Report) and MarketAxess (MKTX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
The Charles Schwab Corporation has a Zacks Rank of #2 (Buy), while MarketAxess has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SCHW is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.
SCHW currently has a forward P/E ratio of 18.66, while MKTX has a forward P/E of 28.15. We also note that SCHW has a PEG ratio of 0.97. 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. MKTX currently has a PEG ratio of 4.99.
Another notable valuation metric for SCHW is its P/B ratio of 3.58. 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, MKTX has a P/B of 5.89.
Based on these metrics and many more, SCHW holds a Value grade of B, while MKTX has a Value grade of F.
SCHW has seen stronger estimate revision activity and sports more attractive valuation metrics than MKTX, so it seems like value investors will conclude that SCHW is the superior option right now.