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EV vs. HRGLY: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Financial - Investment Management sector might want to consider either Eaton Vance (EV - Free Report) or Hargreaves Lansdown plc . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Eaton Vance has a Zacks Rank of #1 (Strong Buy), while Hargreaves Lansdown plc has a Zacks Rank of #5 (Strong Sell) right now. Investors should feel comfortable knowing that EV likely has seen a stronger improvement to its earnings outlook than HRGLY has recently. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
EV currently has a forward P/E ratio of 13.25, while HRGLY has a forward P/E of 34.68. We also note that EV has a PEG ratio of 2.50. 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. HRGLY currently has a PEG ratio of 2.87.
Another notable valuation metric for EV is its P/B ratio of 4.66. 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, HRGLY has a P/B of 22.31.
These are just a few of the metrics contributing to EV's Value grade of B and HRGLY's Value grade of F.
EV is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that EV is likely the superior value option right now.
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EV vs. HRGLY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Financial - Investment Management sector might want to consider either Eaton Vance (EV - Free Report) or Hargreaves Lansdown plc . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Eaton Vance has a Zacks Rank of #1 (Strong Buy), while Hargreaves Lansdown plc has a Zacks Rank of #5 (Strong Sell) right now. Investors should feel comfortable knowing that EV likely has seen a stronger improvement to its earnings outlook than HRGLY has recently. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
EV currently has a forward P/E ratio of 13.25, while HRGLY has a forward P/E of 34.68. We also note that EV has a PEG ratio of 2.50. 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. HRGLY currently has a PEG ratio of 2.87.
Another notable valuation metric for EV is its P/B ratio of 4.66. 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, HRGLY has a P/B of 22.31.
These are just a few of the metrics contributing to EV's Value grade of B and HRGLY's Value grade of F.
EV is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that EV is likely the superior value option right now.