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VCTR or SEIC: Which Is the Better Value Stock Right Now?
Victory CapitalVictory Capital(US:VCTR) ZACKSยท2024-06-03 16:46

Core Insights - Victory Capital Holdings (VCTR) is currently rated 2 (Buy) by Zacks Rank, indicating a more favorable earnings estimate revision compared to SEI Investments (SEIC), which holds a 3 (Hold) rating [3] - Value investors assess a range of traditional metrics to determine if a stock is undervalued, beyond just earnings estimates [3] Valuation Metrics - VCTR has a forward P/E ratio of 9.83, significantly lower than SEIC's forward P/E of 16.40, suggesting VCTR may be undervalued [5] - The PEG ratio for VCTR is 0.55, while SEIC's PEG ratio is 1.37, indicating VCTR's expected earnings growth is more favorable relative to its price [5] - VCTR's P/B ratio stands at 3.12, compared to SEIC's P/B of 3.94, further supporting VCTR's valuation attractiveness [6] Value Grades - Based on the aforementioned metrics, VCTR has received a Value grade of B, while SEIC has a Value grade of C, highlighting VCTR's superior valuation profile [6] - The improving earnings outlook for VCTR enhances its attractiveness as a value investment option [7]