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MS vs. TW: Which Stock Is the Better Value Option?
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Investors interested in Financial - Investment Bank stocks are likely familiar with Morgan Stanley (MS - Free Report) and Tradeweb Markets (TW - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Morgan Stanley and Tradeweb Markets are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that MS'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 also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
MS currently has a forward P/E ratio of 13.82, while TW has a forward P/E of 45.44. We also note that MS has a PEG ratio of 2.44. 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. TW currently has a PEG ratio of 2.52.
Another notable valuation metric for MS is its P/B ratio of 1.92. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TW has a P/B of 3.77.
Based on these metrics and many more, MS holds a Value grade of B, while TW has a Value grade of F.
MS has seen stronger estimate revision activity and sports more attractive valuation metrics than TW, so it seems like value investors will conclude that MS is the superior option right now.
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MS vs. TW: Which Stock Is the Better Value Option?
Investors interested in Financial - Investment Bank stocks are likely familiar with Morgan Stanley (MS - Free Report) and Tradeweb Markets (TW - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Morgan Stanley and Tradeweb Markets are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that MS'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 also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
MS currently has a forward P/E ratio of 13.82, while TW has a forward P/E of 45.44. We also note that MS has a PEG ratio of 2.44. 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. TW currently has a PEG ratio of 2.52.
Another notable valuation metric for MS is its P/B ratio of 1.92. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TW has a P/B of 3.77.
Based on these metrics and many more, MS holds a Value grade of B, while TW has a Value grade of F.
MS has seen stronger estimate revision activity and sports more attractive valuation metrics than TW, so it seems like value investors will conclude that MS is the superior option right now.