Yahoo Finance VCTR or SEIC: Which Is the Better Value Stock Right Now?
Investors with an interest in Financial - Investment Management stocks have likely encountered both Victory Capital Holdings (VCTR) and SEI Investments (SEIC). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Victory Capital Holdings has a Zacks Rank of #2 (Buy), while SEI Investments has a Zacks Rank of #3 (Hold). This means that VCTR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
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.
VCTR currently has a forward P/E ratio of 9.83, while SEIC has a forward P/E of 16.40. We also note that VCTR has a PEG ratio of 0.55. 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. SEIC currently has a PEG ratio of 1.37.
Another notable valuation metric for VCTR is its P/B ratio of 3.12. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, SEIC has a P/B of 3.94.
These metrics, and several others, help VCTR earn a Value grade of B, while SEIC has been given a Value grade of C.
VCTR 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 VCTR is likely the superior value option right now.
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Victory Capital Holdings, Inc. (VCTR) : Free Stock Analysis Report
SEI Investments Company (SEIC) : Free Stock Analysis Report
