AMG or CG: Which Is the Better Value Stock Right Now?

Core Viewpoint - Investors in the Financial - Investment Management sector should consider Affiliated Managers Group (AMG) and Carlyle Group (CG) for potential undervalued stock opportunities [1] Group 1: Company Rankings and Performance - AMG has a Zacks Rank of 1 (Strong Buy), while CG has a Zacks Rank of 3 (Hold), indicating a more favorable earnings estimate revision trend for AMG [3] - AMG's improving analyst outlook suggests a stronger performance compared to CG [3] Group 2: Valuation Metrics - AMG has a forward P/E ratio of 7.95, significantly lower than CG's forward P/E of 11.48 [5] - AMG's PEG ratio is 0.61, while CG's PEG ratio is 1, indicating AMG's better valuation relative to its expected earnings growth [5] - AMG's P/B ratio is 1.28, compared to CG's P/B of 2.63, further highlighting AMG's superior valuation metrics [6] Group 3: Value Grades - AMG has earned a Value grade of A, while CG has a Value grade of C, reflecting AMG's stronger position as a value investment [6] - Based on the solid earnings outlook and favorable valuation figures, AMG is considered the superior value option at this time [7]