JHG or SEIC: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Financial - Investment Management sector might want to consider either Janus Henderson Group plc (JHG) or SEI Investments (SEIC). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both Janus Henderson Group plc and SEI Investments have a Zacks Rank of # 1 (Strong Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
JHG currently has a forward P/E ratio of 11.08, while SEIC has a forward P/E of 16.78. We also note that JHG has a PEG ratio of 1.05. 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. SEIC currently has a PEG ratio of 1.40.
Another notable valuation metric for JHG is its P/B ratio of 1.09. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SEIC has a P/B of 4.06.
Based on these metrics and many more, JHG holds a Value grade of B, while SEIC has a Value grade of D.
Both JHG and SEIC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that JHG is the superior value option right now.
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Janus Henderson Group plc (JHG) : Free Stock Analysis Report
SEI Investments Company (SEIC) : Free Stock Analysis Report
