VCTR or SEIC: Which Is the Better Value Stock Right Now?

Zacks
2024-12-07

Investors interested in Financial - Investment Management stocks are likely familiar with Victory Capital Holdings (VCTR) and SEI Investments (SEIC). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, both Victory Capital Holdings and SEI Investments are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

VCTR currently has a forward P/E ratio of 12.66, while SEIC has a forward P/E of 19. We also note that VCTR has a PEG ratio of 0.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SEIC currently has a PEG ratio of 1.58.

Another notable valuation metric for VCTR is its P/B ratio of 3.72. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SEIC has a P/B of 4.59.

These are just a few of the metrics contributing to VCTR's Value grade of B and SEIC's Value grade of C.

Both VCTR and SEIC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that VCTR is the superior value option right now.

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Victory Capital Holdings, Inc. (VCTR) : Free Stock Analysis Report

SEI Investments Company (SEIC) : Free Stock Analysis Report

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