VCTR vs. BX: Which Stock Should Value Investors Buy Now?
Investors with an interest in Financial - Investment Management stocks have likely encountered both Victory Capital Holdings (VCTR) and Blackstone Group (BX). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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.
Currently, both Victory Capital Holdings and Blackstone Group are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle 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 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 7.21, while BX has a forward P/E of 27.34. We also note that VCTR has a PEG ratio of 0.76. 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. BX currently has a PEG ratio of 1.33.
Another notable valuation metric for VCTR is its P/B ratio of 2.94. 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, BX has a P/B of 3.96.
These are just a few of the metrics contributing to VCTR's Value grade of A and BX's Value grade of D.
Both VCTR and BX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that VCTR is the superior value option right now.
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Victory Capital Holdings, Inc. (VCTR) : Free Stock Analysis Report
Blackstone Group IncThe (BX) : Free Stock Analysis Report
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