Investors interested in stocks from the Financial - Investment Management sector have probably already heard of Victory Capital Holdings (VCTR) and 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Victory Capital Holdings is sporting a Zacks Rank of #1 (Strong 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 VCTR is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
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.
VCTR currently has a forward P/E ratio of 6.24, while APO has a forward P/E of 20.39. We also note that VCTR has a PEG ratio of 0.64. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. APO currently has a PEG ratio of 2.04.
Another notable valuation metric for VCTR is its P/B ratio of 1.74. 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, APO has a P/B of 3.07.
These metrics, and several others, help VCTR earn a Value grade of A, while APO has been given a Value grade of C.
VCTR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that VCTR is likely the superior value option right now.
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Victory Capital Holdings, Inc. (VCTR) : Free Stock Analysis Report
Apollo Global Management, LLC (APO) : Free Stock Analysis Report
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