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JHG vs. TROW: Which Stock Should Value Investors Buy 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 is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Janus Henderson Group plc has a Zacks Rank of #2 (Buy), while T. Rowe Price has a Zacks Rank of #3 (Hold) right now. This means that JHG's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.
JHG currently has a forward P/E ratio of 11.44, while TROW has a forward P/E of 12.98. We also note that JHG has a PEG ratio of 0.99. 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 1.96.
Another notable valuation metric for JHG is its P/B ratio of 1.24. 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, TROW has a P/B of 2.57.
These are just a few of the metrics contributing to JHG's Value grade of B and TROW's Value grade of C.
JHG has seen stronger estimate revision activity and sports more attractive valuation metrics than TROW, so it seems like value investors will conclude that JHG is the superior option right now.
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JHG vs. TROW: Which Stock Should Value Investors Buy 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 is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Janus Henderson Group plc has a Zacks Rank of #2 (Buy), while T. Rowe Price has a Zacks Rank of #3 (Hold) right now. This means that JHG's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.
JHG currently has a forward P/E ratio of 11.44, while TROW has a forward P/E of 12.98. We also note that JHG has a PEG ratio of 0.99. 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 1.96.
Another notable valuation metric for JHG is its P/B ratio of 1.24. 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, TROW has a P/B of 2.57.
These are just a few of the metrics contributing to JHG's Value grade of B and TROW's Value grade of C.
JHG has seen stronger estimate revision activity and sports more attractive valuation metrics than TROW, so it seems like value investors will conclude that JHG is the superior option right now.