Investors interested in stocks from the Financial - Investment Management sector have probably already heard of Victory Capital Holdings (VCTR) and Oaktree Capital Group, LLC (OAK). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Victory Capital Holdings and Oaktree Capital Group, LLC are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, 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. 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 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.
VCTR currently has a forward P/E ratio of 5.53, while OAK has a forward P/E of 15.59. We also note that VCTR has a PEG ratio of 0.49. 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. OAK currently has a PEG ratio of 1.04.
Another notable valuation metric for VCTR is its P/B ratio of 1.48. 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, OAK has a P/B of 3.34.
These are just a few of the metrics contributing to VCTR's Value grade of A and OAK's Value grade of D.
VCTR stands above OAK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VCTR is the superior value option right now.
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Victory Capital Holdings, Inc. (VCTR) : Free Stock Analysis Report
Oaktree Capital Group, LLC (OAK) : Free Stock Analysis Report
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