We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
IVZ vs. SEIC: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in stocks from the Financial - Investment Management sector have probably already heard of Invesco (IVZ - Free Report) and SEI Investments (SEIC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Invesco is sporting a Zacks Rank of #2 (Buy), while SEI Investments has a Zacks Rank of #3 (Hold). This means that IVZ'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 also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
IVZ currently has a forward P/E ratio of 5.30, while SEIC has a forward P/E of 16.23. We also note that IVZ has a PEG ratio of 0.67. 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 1.35.
Another notable valuation metric for IVZ is its P/B ratio of 0.67. 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, SEIC has a P/B of 5.12.
Based on these metrics and many more, IVZ holds a Value grade of A, while SEIC has a Value grade of C.
IVZ stands above SEIC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that IVZ is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
IVZ vs. SEIC: Which Stock Is the Better Value Option?
Investors interested in stocks from the Financial - Investment Management sector have probably already heard of Invesco (IVZ - Free Report) and SEI Investments (SEIC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Invesco is sporting a Zacks Rank of #2 (Buy), while SEI Investments has a Zacks Rank of #3 (Hold). This means that IVZ'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 also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
IVZ currently has a forward P/E ratio of 5.30, while SEIC has a forward P/E of 16.23. We also note that IVZ has a PEG ratio of 0.67. 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 1.35.
Another notable valuation metric for IVZ is its P/B ratio of 0.67. 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, SEIC has a P/B of 5.12.
Based on these metrics and many more, IVZ holds a Value grade of A, while SEIC has a Value grade of C.
IVZ stands above SEIC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that IVZ is the superior value option right now.