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PNC vs. TW: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Financial - Investment Bank sector might want to consider either The PNC Financial Services Group, Inc (PNC - Free Report) or Tradeweb Markets (TW - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both The PNC Financial Services Group, Inc and Tradeweb Markets have 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. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
PNC currently has a forward P/E ratio of 13.96, while TW has a forward P/E of 46.21. We also note that PNC has a PEG ratio of 1.98. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TW currently has a PEG ratio of 2.40.
Another notable valuation metric for PNC is its P/B ratio of 1.33. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TW has a P/B of 5.07.
These are just a few of the metrics contributing to PNC's Value grade of B and TW's Value grade of F.
Both PNC and TW are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PNC is the superior value option right now.
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PNC vs. TW: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Financial - Investment Bank sector might want to consider either The PNC Financial Services Group, Inc (PNC - Free Report) or Tradeweb Markets (TW - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both The PNC Financial Services Group, Inc and Tradeweb Markets have 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. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
PNC currently has a forward P/E ratio of 13.96, while TW has a forward P/E of 46.21. We also note that PNC has a PEG ratio of 1.98. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TW currently has a PEG ratio of 2.40.
Another notable valuation metric for PNC is its P/B ratio of 1.33. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TW has a P/B of 5.07.
These are just a few of the metrics contributing to PNC's Value grade of B and TW's Value grade of F.
Both PNC and TW are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PNC is the superior value option right now.