VCTR vs. SEIC: Which Stock Is the Better Value Option?

Core Viewpoint - Victory Capital Holdings (VCTR) is currently viewed as a superior value option compared to SEI Investments (SEIC) based on various valuation metrics [6]. Valuation Metrics - VCTR has a P/B ratio of 3.13, while SEIC has a P/B ratio of 3.96, indicating that VCTR is relatively more undervalued [2]. - The forward P/E ratio for VCTR is 9.90, significantly lower than SEIC's forward P/E of 16.25, suggesting VCTR may offer better value [4]. - VCTR's PEG ratio stands at 0.58, compared to SEIC's PEG ratio of 1.35, further supporting the notion that VCTR is a more attractive investment based on expected earnings growth [4]. Earnings Outlook - Both VCTR and SEIC have a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3]. - The improving earnings outlook for both companies is a key factor for investors, but VCTR is highlighted as the better option based on valuation figures [6]. Investment Strategy - The investment strategy includes using a combination of strong Value grades and positive Zacks Ranks to identify undervalued companies [7]. - The Value category of the Style Scores system evaluates companies based on metrics such as P/E ratio, P/S ratio, earnings yield, and cash flow per share to determine fair value [8]. - VCTR has a Value grade of B, while SEIC has a Value grade of C, indicating a stronger valuation profile for VCTR [9].