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RJF or SCHW: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Financial - Investment Bank sector have probably already heard of Raymond James Financial, Inc. (RJF - Free Report) and The Charles Schwab Corporation (SCHW - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both Raymond James Financial, Inc. and The Charles Schwab Corporation are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
RJF currently has a forward P/E ratio of 14.48, while SCHW has a forward P/E of 19.50. We also note that RJF has a PEG ratio of 0.94. 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. SCHW currently has a PEG ratio of 1.
Another notable valuation metric for RJF is its P/B ratio of 2.78. 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, SCHW has a P/B of 3.85.
These are just a few of the metrics contributing to RJF's Value grade of B and SCHW's Value grade of C.
Both RJF and SCHW are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that RJF is the superior value option right now.
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RJF or SCHW: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Financial - Investment Bank sector have probably already heard of Raymond James Financial, Inc. (RJF - Free Report) and The Charles Schwab Corporation (SCHW - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both Raymond James Financial, Inc. and The Charles Schwab Corporation are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
RJF currently has a forward P/E ratio of 14.48, while SCHW has a forward P/E of 19.50. We also note that RJF has a PEG ratio of 0.94. 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. SCHW currently has a PEG ratio of 1.
Another notable valuation metric for RJF is its P/B ratio of 2.78. 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, SCHW has a P/B of 3.85.
These are just a few of the metrics contributing to RJF's Value grade of B and SCHW's Value grade of C.
Both RJF and SCHW are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that RJF is the superior value option right now.