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JHG or TROW: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Financial - Investment Management sector might want to consider either Janus Henderson Group plc (JHG - Free Report) or T. Rowe Price (TROW - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Janus Henderson Group plc and T. Rowe Price are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have 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 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.
JHG currently has a forward P/E ratio of 9.24, while TROW has a forward P/E of 14.43. We also note that JHG has a PEG ratio of 1.06. 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. TROW currently has a PEG ratio of 1.22.
Another notable valuation metric for JHG is its P/B ratio of 1.23. 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, TROW has a P/B of 5.05.
These metrics, and several others, help JHG earn a Value grade of A, while TROW has been given a Value grade of D.
Both JHG and TROW are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that JHG is the superior value option right now.
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JHG or TROW: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Financial - Investment Management sector might want to consider either Janus Henderson Group plc (JHG - Free Report) or T. Rowe Price (TROW - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Janus Henderson Group plc and T. Rowe Price are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have 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 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.
JHG currently has a forward P/E ratio of 9.24, while TROW has a forward P/E of 14.43. We also note that JHG has a PEG ratio of 1.06. 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. TROW currently has a PEG ratio of 1.22.
Another notable valuation metric for JHG is its P/B ratio of 1.23. 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, TROW has a P/B of 5.05.
These metrics, and several others, help JHG earn a Value grade of A, while TROW has been given a Value grade of D.
Both JHG and TROW are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that JHG is the superior value option right now.