For investors seeking value in the Financial – Investment Management sector, Victory Capital Holdings (VCTR) and SEI Investments (SEIC) are likely on their radar. But which of these two stocks presents the more compelling investment opportunity? To answer this, we’ll delve into a detailed analysis using a powerful combination of Zacks Rank and Style Scores.
The Zacks Rank, a renowned system for identifying stocks with positive earnings estimate revisions, signals that both VCTR and SEIC are currently rated #2 (Buy). This suggests an optimistic earnings outlook for both companies. However, for value investors, a deeper dive beyond the Zacks Rank is crucial.
We employ Style Scores, which grade companies based on specific investment characteristics. These scores provide valuable insights for discerning investors.
Both VCTR and SEIC are currently sporting a Zacks Rank of #2 (Buy), signifying an improving earnings outlook. But value investors consider more than just earnings trends.
To identify undervalued companies, value investors rely on a range of established metrics. Our Style Score Value grade incorporates several key fundamental metrics, including:
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P/E Ratio:
VCTR boasts a forward P/E of 11.12, while SEIC’s stands at 16.52.*
PEG Ratio:
This metric, similar to the P/E ratio, incorporates expected earnings growth. VCTR’s PEG ratio is 0.61, compared to SEIC’s 1.38.*
P/B Ratio:
This ratio measures a stock’s market value relative to its book value (assets minus liabilities). VCTR’s P/B is 3.36, while SEIC’s is 4.05.These metrics, and others considered in our Style Score, contribute to VCTR earning a Value grade of B, while SEIC receives a Value grade of C.
In conclusion, while both VCTR and SEIC are strong stocks with solid earnings prospects, the valuation figures analyzed above suggest that VCTR currently presents a more compelling value proposition for investors.