We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
FHI vs. BSIG: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in Financial - Investment Management stocks are likely familiar with Federated Hermes (FHI - Free Report) and BrightSphere Investment Group (BSIG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.
Right now, Federated Hermes is sporting a Zacks Rank of #2 (Buy), while BrightSphere Investment Group has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FHI has an improving earnings outlook. But this is just one piece of the puzzle 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.
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.
FHI currently has a forward P/E ratio of 9.10, while BSIG has a forward P/E of 10.68. We also note that FHI has a PEG ratio of 0.74. 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. BSIG currently has a PEG ratio of 3.47.
Another notable valuation metric for FHI is its P/B ratio of 2.38. 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, BSIG has a P/B of 5.39.
Based on these metrics and many more, FHI holds a Value grade of A, while BSIG has a Value grade of C.
FHI stands above BSIG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FHI is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
FHI vs. BSIG: Which Stock Is the Better Value Option?
Investors interested in Financial - Investment Management stocks are likely familiar with Federated Hermes (FHI - Free Report) and BrightSphere Investment Group (BSIG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.
Right now, Federated Hermes is sporting a Zacks Rank of #2 (Buy), while BrightSphere Investment Group has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FHI has an improving earnings outlook. But this is just one piece of the puzzle 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.
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.
FHI currently has a forward P/E ratio of 9.10, while BSIG has a forward P/E of 10.68. We also note that FHI has a PEG ratio of 0.74. 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. BSIG currently has a PEG ratio of 3.47.
Another notable valuation metric for FHI is its P/B ratio of 2.38. 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, BSIG has a P/B of 5.39.
Based on these metrics and many more, FHI holds a Value grade of A, while BSIG has a Value grade of C.
FHI stands above BSIG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FHI is the superior value option right now.