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FHI or BLK: Which Is the Better Value Stock Right Now?
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Investors interested in Financial - Investment Management stocks are likely familiar with Federated Hermes (FHI - Free Report) and BlackRock (BLK - 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Federated Hermes and BlackRock are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that FHI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
FHI currently has a forward P/E ratio of 9.93, while BLK has a forward P/E of 21.95. We also note that FHI has a PEG ratio of 0.78. 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. BLK currently has a PEG ratio of 2.99.
Another notable valuation metric for FHI is its P/B ratio of 3.16. 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, BLK has a P/B of 3.17.
These are just a few of the metrics contributing to FHI's Value grade of B and BLK's Value grade of F.
FHI stands above BLK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FHI is the superior value option right now.
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FHI or BLK: Which Is the Better Value Stock Right Now?
Investors interested in Financial - Investment Management stocks are likely familiar with Federated Hermes (FHI - Free Report) and BlackRock (BLK - 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Federated Hermes and BlackRock are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that FHI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
FHI currently has a forward P/E ratio of 9.93, while BLK has a forward P/E of 21.95. We also note that FHI has a PEG ratio of 0.78. 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. BLK currently has a PEG ratio of 2.99.
Another notable valuation metric for FHI is its P/B ratio of 3.16. 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, BLK has a P/B of 3.17.
These are just a few of the metrics contributing to FHI's Value grade of B and BLK's Value grade of F.
FHI stands above BLK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FHI is the superior value option right now.