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PAX vs. BLK: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Financial - Investment Management sector have probably already heard of Patria Investments (PAX - Free Report) and BlackRock (BLK - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Patria Investments and BlackRock are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PAX 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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

PAX currently has a forward P/E ratio of 11.00, while BLK has a forward P/E of 20.65. We also note that PAX has a PEG ratio of 0.71. 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. BLK currently has a PEG ratio of 1.44.

Another notable valuation metric for PAX is its P/B ratio of 1.87. 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, BLK has a P/B of 3.09.

These metrics, and several others, help PAX earn a Value grade of A, while BLK has been given a Value grade of D.

PAX sticks out from BLK in both our Zacks Rank and Style Scores models, so value investors will likely feel that PAX is the better option right now.


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