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NMR or JPM: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Financial - Investment Bank sector might want to consider either Nomura Holdings (NMR - Free Report) or JPMorgan Chase & Co. (JPM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both Nomura Holdings and JPMorgan Chase & Co. are holding a Zacks Rank of #1 (Strong 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 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.
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.
NMR currently has a forward P/E ratio of 10.28, while JPM has a forward P/E of 14.07. We also note that NMR has a PEG ratio of 1.04. 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. JPM currently has a PEG ratio of 1.41.
Another notable valuation metric for NMR is its P/B ratio of 1.11. 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, JPM has a P/B of 2.66.
These metrics, and several others, help NMR earn a Value grade of A, while JPM has been given a Value grade of F.
Both NMR and JPM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NMR is the superior value option right now.
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NMR or JPM: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Financial - Investment Bank sector might want to consider either Nomura Holdings (NMR - Free Report) or JPMorgan Chase & Co. (JPM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both Nomura Holdings and JPMorgan Chase & Co. are holding a Zacks Rank of #1 (Strong 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 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.
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.
NMR currently has a forward P/E ratio of 10.28, while JPM has a forward P/E of 14.07. We also note that NMR has a PEG ratio of 1.04. 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. JPM currently has a PEG ratio of 1.41.
Another notable valuation metric for NMR is its P/B ratio of 1.11. 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, JPM has a P/B of 2.66.
These metrics, and several others, help NMR earn a Value grade of A, while JPM has been given a Value grade of F.
Both NMR and JPM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NMR is the superior value option right now.