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VCTR or SEIC: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Financial - Investment Management sector have probably already heard of Victory Capital Holdings (VCTR - Free Report) and SEI Investments (SEIC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both Victory Capital Holdings and SEI Investments are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.

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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

VCTR currently has a forward P/E ratio of 10.06, while SEIC has a forward P/E of 16.67. We also note that VCTR has a PEG ratio of 0.59. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SEIC currently has a PEG ratio of 1.39.

Another notable valuation metric for VCTR is its P/B ratio of 3.18. 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, SEIC has a P/B of 4.06.

These are just a few of the metrics contributing to VCTR's Value grade of B and SEIC's Value grade of C.

Both VCTR and SEIC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that VCTR is the superior value option right now.


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