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AMP vs. ARES: Which Stock Is the Better Value Option?
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Investors interested in Financial - Investment Management stocks are likely familiar with Ameriprise Financial Services (AMP - Free Report) and Ares Management (ARES - Free Report) . 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.
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.
Ameriprise Financial Services and Ares Management are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that AMP likely has seen a stronger improvement to its earnings outlook than ARES has recently. But this is just one piece of the puzzle 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
AMP currently has a forward P/E ratio of 14.39, while ARES has a forward P/E of 41.53. We also note that AMP has a PEG ratio of 0.82. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ARES currently has a PEG ratio of 1.64.
Another notable valuation metric for AMP is its P/B ratio of 8.66. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ARES has a P/B of 10.27.
These metrics, and several others, help AMP earn a Value grade of B, while ARES has been given a Value grade of F.
AMP is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that AMP is likely the superior value option right now.
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AMP vs. ARES: Which Stock Is the Better Value Option?
Investors interested in Financial - Investment Management stocks are likely familiar with Ameriprise Financial Services (AMP - Free Report) and Ares Management (ARES - Free Report) . 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.
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.
Ameriprise Financial Services and Ares Management are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that AMP likely has seen a stronger improvement to its earnings outlook than ARES has recently. But this is just one piece of the puzzle 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
AMP currently has a forward P/E ratio of 14.39, while ARES has a forward P/E of 41.53. We also note that AMP has a PEG ratio of 0.82. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ARES currently has a PEG ratio of 1.64.
Another notable valuation metric for AMP is its P/B ratio of 8.66. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ARES has a P/B of 10.27.
These metrics, and several others, help AMP earn a Value grade of B, while ARES has been given a Value grade of F.
AMP is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that AMP is likely the superior value option right now.