Core Viewpoint - Investors in the Financial - Miscellaneous Services sector should consider XP Inc.A and Brookfield Asset Management, with XP currently presenting a better value opportunity based on various financial metrics [1]. Valuation Metrics - XP Inc.A has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while Brookfield Asset Management has a Zacks Rank of 3 (Hold) [3]. - XP has a forward P/E ratio of 9.16, significantly lower than BAM's forward P/E of 28.75, suggesting XP is undervalued [5]. - The PEG ratio for XP is 0.65, compared to BAM's 1.60, indicating XP's expected earnings growth is more favorable relative to its valuation [5]. - XP's P/B ratio stands at 2.19, while BAM's P/B ratio is 6.22, further highlighting XP's relative undervaluation [6]. - These metrics contribute to XP's Value grade of A and BAM's Value grade of F, reinforcing the notion that XP is the superior value option [6][7].
XP or BAM: Which Is the Better Value Stock Right Now?