Core Viewpoint - The article compares Federated Hermes (FHI) and SEI Investments (SEIC) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Outlook - FHI has a Zacks Rank of 1 (Strong Buy), while SEIC has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for FHI [3] - The Zacks Rank emphasizes stocks with positive revisions to earnings estimates, suggesting an improving earnings outlook for FHI [3] Group 2: Valuation Metrics - FHI has a forward P/E ratio of 10.35, compared to SEIC's forward P/E of 14.82, indicating that FHI may be undervalued [5] - FHI's PEG ratio is 0.53, while SEIC's PEG ratio is 1.23, further suggesting that FHI is a better value option when considering expected earnings growth [5] - FHI's P/B ratio is 3.35, whereas SEIC's P/B ratio is 4.22, reinforcing the notion that FHI is more attractively priced [6] Group 3: Value Grades - FHI has earned a Value grade of B, while SEIC has a Value grade of C, indicating that FHI is viewed as a superior value investment based on various valuation metrics [6]
FHI vs. SEIC: Which Stock Is the Better Value Option?