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FUTU or BAM: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either Futu Holdings Limited Sponsored ADR (FUTU - Free Report) or Brookfield Asset Management (BAM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Futu Holdings Limited Sponsored ADR and Brookfield Asset Management are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that FUTU likely has seen a stronger improvement to its earnings outlook than BAM has recently. But this is just one factor that value investors are interested in.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
FUTU currently has a forward P/E ratio of 16.99, while BAM has a forward P/E of 33.50. We also note that FUTU has a PEG ratio of 0.53. 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. BAM currently has a PEG ratio of 2.18.
Another notable valuation metric for FUTU is its P/B ratio of 4.76. 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, BAM has a P/B of 9.56.
Based on these metrics and many more, FUTU holds a Value grade of B, while BAM has a Value grade of D.
FUTU stands above BAM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FUTU is the superior value option right now.
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FUTU or BAM: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either Futu Holdings Limited Sponsored ADR (FUTU - Free Report) or Brookfield Asset Management (BAM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Futu Holdings Limited Sponsored ADR and Brookfield Asset Management are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that FUTU likely has seen a stronger improvement to its earnings outlook than BAM has recently. But this is just one factor that value investors are interested in.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
FUTU currently has a forward P/E ratio of 16.99, while BAM has a forward P/E of 33.50. We also note that FUTU has a PEG ratio of 0.53. 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. BAM currently has a PEG ratio of 2.18.
Another notable valuation metric for FUTU is its P/B ratio of 4.76. 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, BAM has a P/B of 9.56.
Based on these metrics and many more, FUTU holds a Value grade of B, while BAM has a Value grade of D.
FUTU stands above BAM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FUTU is the superior value option right now.