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PNC or TW: Which Is the Better Value Stock Right Now?

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Investors with an interest in Financial - Investment Bank stocks have likely encountered both The PNC Financial Services Group, Inc (PNC - Free Report) and Tradeweb Markets (TW - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 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.

Right now, The PNC Financial Services Group, Inc is sporting a Zacks Rank of #2 (Buy), while Tradeweb Markets has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PNC likely has seen a stronger improvement to its earnings outlook than TW has recently. But this is just one piece of the puzzle for value investors.

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.

PNC currently has a forward P/E ratio of 11.52, while TW has a forward P/E of 31.20. We also note that PNC has a PEG ratio of 1.27. 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. TW currently has a PEG ratio of 2.05.

Another notable valuation metric for PNC is its P/B ratio of 1.22. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TW has a P/B of 3.64.

Based on these metrics and many more, PNC holds a Value grade of B, while TW has a Value grade of D.

PNC stands above TW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PNC is the superior value option right now.


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