Yahoo Finance JHG vs. BLK: Which Stock Should Value Investors Buy Now?
Investors interested in Financial - Investment Management stocks are likely familiar with Janus Henderson Group plc (JHG) and BlackRock (BLK). But which of these two stocks presents investors with the better value opportunity right now? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Janus Henderson Group plc has a Zacks Rank of #2 (Buy), while BlackRock has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that JHG likely has seen a stronger improvement to its earnings outlook than BLK has recently. 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 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.
JHG currently has a forward P/E ratio of 11.21, while BLK has a forward P/E of 18.38. We also note that JHG has a PEG ratio of 1.51. 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. BLK currently has a PEG ratio of 1.57.
Another notable valuation metric for JHG is its P/B ratio of 1.16. 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, BLK has a P/B of 2.85.
These metrics, and several others, help JHG earn a Value grade of B, while BLK has been given a Value grade of D.
JHG sticks out from BLK in both our Zacks Rank and Style Scores models, so value investors will likely feel that JHG is the better option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Janus Henderson Group plc (JHG) : Free Stock Analysis Report
BlackRock, Inc. (BLK) : Free Stock Analysis Report
