FHI vs. APO: Which Stock Is the Better Value Option?
Investors looking for stocks in the Financial - Investment Management sector might want to consider either Federated Investors (FHI) or Apollo Global Management, LLC (APO). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Federated Investors has a Zacks Rank of #2 (Buy), while Apollo Global Management, LLC has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that FHI 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
FHI currently has a forward P/E ratio of 8.70, while APO has a forward P/E of 15.53. We also note that FHI has a PEG ratio of 0.88. 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. APO currently has a PEG ratio of 0.91.
Another notable valuation metric for FHI is its P/B ratio of 2.58. 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, APO has a P/B of 3.64.
These are just a few of the metrics contributing to FHI's Value grade of B and APO's Value grade of D.
FHI has seen stronger estimate revision activity and sports more attractive valuation metrics than APO, so it seems like value investors will conclude that FHI is the superior option right now.
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Federated Investors, Inc. (FHI) : Free Stock Analysis Report
Apollo Global Management, LLC (APO) : Free Stock Analysis Report
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