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FUTU vs. TRI: Which Stock Should Value Investors Buy Now?
FUTUFUTU(FUTU) ZACKS·2024-07-10 16:47

Core Insights - Futu Holdings Limited Sponsored ADR (FUTU) is currently rated as a 1 (Strong Buy) by Zacks Rank, indicating a positive earnings outlook, while Thomson Reuters (TRI) holds a 3 (Hold) rating, suggesting a less favorable position for value investors [1] - The analysis of traditional valuation metrics shows that FUTU has a forward P/E ratio of 14.46 and a PEG ratio of 0.92, indicating it is undervalued compared to TRI, which has a forward P/E of 45.51 and a PEG ratio of 6.38 [2] - FUTU's P/B ratio stands at 3.23, significantly lower than TRI's P/B of 6.83, further supporting the conclusion that FUTU is a superior value option based on these metrics [3] Valuation Metrics - FUTU's forward P/E ratio is 14.46, while TRI's is 45.51, highlighting a substantial difference in valuation [2] - The PEG ratio for FUTU is 0.92, compared to TRI's 6.38, indicating that FUTU is expected to grow earnings at a more favorable rate relative to its price [2] - The P/B ratio for FUTU is 3.23, whereas TRI's P/B ratio is 6.83, suggesting that FUTU's market value is more aligned with its book value [3] Investment Outlook - The improving earnings outlook for FUTU, combined with its favorable valuation metrics, positions it as a more attractive investment opportunity compared to TRI [1][3]