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IVZ or CG: Which Is the Better Value Stock Right Now?

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Investors with an interest in Financial - Investment Management stocks have likely encountered both Invesco (IVZ - Free Report) and Carlyle Group (CG - 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 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.

Invesco has a Zacks Rank of #1 (Strong Buy), while Carlyle Group has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that IVZ likely has seen a stronger improvement to its earnings outlook than CG has recently. 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.

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.

IVZ currently has a forward P/E ratio of 11.23, while CG has a forward P/E of 12.79. We also note that IVZ has a PEG ratio of 0.46. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CG currently has a PEG ratio of 1.44.

Another notable valuation metric for IVZ is its P/B ratio of 1.33. 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, CG has a P/B of 2.35.

These metrics, and several others, help IVZ earn a Value grade of B, while CG has been given a Value grade of D.

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

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