VCTR vs. SEIC: Which Stock Is the Better Value Option?

Zacks
2024-10-14

Investors interested in stocks from the Financial - Investment Management sector have probably already heard of 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.

Victory Capital Holdings and SEI Investments are both sporting a Zacks Rank of # 2 (Buy) right now. 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. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

VCTR currently has a forward P/E ratio of 11.12, while SEIC has a forward P/E of 16.52. We also note that VCTR has a PEG ratio of 0.61. 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 1.38.

Another notable valuation metric for VCTR is its P/B ratio of 3.36. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SEIC has a P/B of 4.05.

These metrics, and several others, help VCTR earn a Value grade of B, while SEIC has been given a 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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