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GS or WETF: Which Is the Better Value Stock Right Now?
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Investors with an interest in Financial - Investment Bank stocks have likely encountered both Goldman Sachs (GS - Free Report) and WisdomTree Investments, Inc. . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Currently, Goldman Sachs has a Zacks Rank of #2 (Buy), while WisdomTree Investments, Inc. has a Zacks Rank of #3 (Hold). This means that GS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GS currently has a forward P/E ratio of 11.02, while WETF has a forward P/E of 17.76. We also note that GS has a PEG ratio of 0.57. 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. WETF currently has a PEG ratio of 1.14.
Another notable valuation metric for GS is its P/B ratio of 1.30. 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, WETF has a P/B of 2.96.
Based on these metrics and many more, GS holds a Value grade of B, while WETF has a Value grade of C.
GS stands above WETF thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GS is the superior value option right now.
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GS or WETF: Which Is the Better Value Stock Right Now?
Investors with an interest in Financial - Investment Bank stocks have likely encountered both Goldman Sachs (GS - Free Report) and WisdomTree Investments, Inc. . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Currently, Goldman Sachs has a Zacks Rank of #2 (Buy), while WisdomTree Investments, Inc. has a Zacks Rank of #3 (Hold). This means that GS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GS currently has a forward P/E ratio of 11.02, while WETF has a forward P/E of 17.76. We also note that GS has a PEG ratio of 0.57. 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. WETF currently has a PEG ratio of 1.14.
Another notable valuation metric for GS is its P/B ratio of 1.30. 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, WETF has a P/B of 2.96.
Based on these metrics and many more, GS holds a Value grade of B, while WETF has a Value grade of C.
GS stands above WETF thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GS is the superior value option right now.