VCTR or BLK: Which Is the Better Value Stock Right Now?
Investors interested in Financial - Investment Management stocks are likely familiar with Victory Capital Holdings (VCTR) and BlackRock (BLK). 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 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.
Victory Capital Holdings has a Zacks Rank of #1 (Strong Buy), while BlackRock has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VCTR has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
VCTR currently has a forward P/E ratio of 8.14, while BLK has a forward P/E of 20.54. We also note that VCTR has a PEG ratio of 0.55. 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. BLK currently has a PEG ratio of 1.80.
Another notable valuation metric for VCTR is its P/B ratio of 2.55. 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, BLK has a P/B of 3.07.
Based on these metrics and many more, VCTR holds a Value grade of B, while BLK has a Value grade of D.
VCTR sticks out from BLK in both our Zacks Rank and Style Scores models, so value investors will likely feel that VCTR is the better option right now.
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Victory Capital Holdings, Inc. (VCTR) : Free Stock Analysis Report
BlackRock, Inc. (BLK) : Free Stock Analysis Report
