PAX vs. ARES: Which Stock Should Value Investors Buy Now?

Core Insights - Investors in the Financial - Investment Management sector should consider Patria Investments (PAX) and Ares Management (ARES) for potential undervalued stock opportunities [1] - PAX has a Zacks Rank of 2 (Buy) indicating a positive earnings outlook, while ARES has a Zacks Rank of 3 (Hold) suggesting a more cautious stance [1][3] Valuation Metrics - PAX has a forward P/E ratio of 7.83, significantly lower than ARES's forward P/E of 29.52, indicating that PAX may be undervalued [2] - The PEG ratio for PAX is 0.66, while ARES has a PEG ratio of 1, suggesting PAX has better expected earnings growth relative to its price [2] - PAX's P/B ratio is 1.35 compared to ARES's P/B of 9.07, further highlighting PAX's more attractive valuation [2] Value Grades - PAX has a Value grade of A, while ARES has a Value grade of F, indicating that PAX is viewed as a superior investment option based on valuation metrics [3]