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NMR vs. WETF: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Financial - Investment Bank sector have probably already heard of Nomura Holdings (NMR) and WisdomTree Investments, Inc. (WETF). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.

Nomura Holdings and WisdomTree Investments, Inc. are both sporting a Zacks Rank of # 2 (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 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

NMR currently has a forward P/E ratio of 6.87, while WETF has a forward P/E of 22.76. We also note that NMR has a PEG ratio of 1.24. 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. WETF currently has a PEG ratio of 1.46.

Another notable valuation metric for NMR is its P/B ratio of 0.60. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, WETF has a P/B of 3.60.

These metrics, and several others, help NMR earn a Value grade of B, while WETF has been given a Value grade of F.

Both NMR and WETF 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
 
WisdomTree Investments, Inc. (WETF) : Free Stock Analysis Report
 
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