JMP vs. LTS: Which Stock Is the Better Value Option?
Investors looking for stocks in the Financial - Investment Bank sector might want to consider either JMP (JMP) or Ladenburg Thalmann (LTS). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 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.
Right now, JMP is sporting a Zacks Rank of #1 (Strong Buy), while Ladenburg Thalmann has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that JMP has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
JMP currently has a forward P/E ratio of 11.67, while LTS has a forward P/E of 66.40. We also note that JMP has a PEG ratio of 1.17. 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. LTS currently has a PEG ratio of 4.43.
Another notable valuation metric for JMP is its P/B ratio of 0.96. 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, LTS has a P/B of 1.94.
These are just a few of the metrics contributing to JMP's Value grade of B and LTS's Value grade of D.
JMP has seen stronger estimate revision activity and sports more attractive valuation metrics than LTS, so it seems like value investors will conclude that JMP is the superior option right now.
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JMP Group LLC (JMP) : Free Stock Analysis Report
Ladenburg Thalmann Financial Services Inc (LTS) : Free Stock Analysis Report
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