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JHG vs. SEIC: Which Stock Should Value Investors Buy Now?

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Investors interested in Financial - Investment Management stocks are likely familiar with Janus Henderson Group plc (JHG - Free Report) and SEI Investments (SEIC - 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.

Currently, both Janus Henderson Group plc 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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

JHG currently has a forward P/E ratio of 11.50, while SEIC has a forward P/E of 19.08. We also note that JHG has a PEG ratio of 1.36. 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. SEIC currently has a PEG ratio of 1.59.

Another notable valuation metric for JHG is its P/B ratio of 1.27. 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 4.95.

These metrics, and several others, help JHG earn a Value grade of B, while SEIC has been given a Value grade of C.

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


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