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EVR vs. HOOD: Which Stock Is the Better Value Option?

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Investors with an interest in Financial - Investment Bank stocks have likely encountered both Evercore (EVR - Free Report) and Robinhood Markets, Inc. (HOOD - 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.

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.

Evercore has a Zacks Rank of #2 (Buy), while Robinhood Markets, Inc. has a Zacks Rank of #3 (Hold) right now. This means that EVR'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 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.

EVR currently has a forward P/E ratio of 16.35, while HOOD has a forward P/E of 34.08. We also note that EVR has a PEG ratio of 0.48. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HOOD currently has a PEG ratio of 1.63.

Another notable valuation metric for EVR is its P/B ratio of 5.03. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, HOOD has a P/B of 7.93.

These are just a few of the metrics contributing to EVR's Value grade of B and HOOD's Value grade of F.

EVR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that EVR is likely the superior value option right now.

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