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RJF or TW: 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 Raymond James Financial, Inc. (RJF - Free Report) and Tradeweb Markets (TW - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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, Raymond James Financial, Inc. is sporting a Zacks Rank of #2 (Buy), while Tradeweb Markets 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 RJF 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.

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.

RJF currently has a forward P/E ratio of 12.82, while TW has a forward P/E of 37.96. We also note that RJF has a PEG ratio of 0.83. 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. TW currently has a PEG ratio of 2.12.

Another notable valuation metric for RJF is its P/B ratio of 2.35. 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 4.06.

Based on these metrics and many more, RJF holds a Value grade of B, while TW has a Value grade of F.

RJF sticks out from TW in both our Zacks Rank and Style Scores models, so value investors will likely feel that RJF is the better option right now.


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Tradeweb Markets Inc. (TW) - free report >>

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