NMR vs. TW: Which Stock Is the Better Value Option?
Investors interested in Financial - Investment Bank stocks are likely familiar with Nomura Holdings (NMR) and Tradeweb Markets (TW). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both Nomura Holdings and Tradeweb Markets are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
NMR currently has a forward P/E ratio of 4.97, while TW has a forward P/E of 48.63. We also note that NMR has a PEG ratio of 2.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TW currently has a PEG ratio of 3.17.
Another notable valuation metric for NMR is its P/B ratio of 0.57. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TW has a P/B of 2.87.
These are just a few of the metrics contributing to NMR's Value grade of B and TW's Value grade of F.
Both NMR and TW are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NMR is the superior value option right now.
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Nomura Holdings Inc ADR (NMR) : Free Stock Analysis Report
Tradeweb Markets Inc. (TW) : Free Stock Analysis Report
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