Send me real-time posts from this site at my email
Zacks

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

Investors interested in stocks from the Financial - Investment Management sector have probably already heard of Focus Financial Partners Inc. (FOCS) and SEI Investments (SEIC). But which of these two stocks presents investors with the better value opportunity right now? 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.

Focus Financial Partners Inc. and SEI Investments are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that FOCS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

FOCS currently has a forward P/E ratio of 11.19, while SEIC has a forward P/E of 15.19. We also note that FOCS has a PEG ratio of 0.44. 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. SEIC currently has a PEG ratio of 1.27.

Another notable valuation metric for FOCS is its P/B ratio of 3.36. 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, SEIC has a P/B of 4.43.

These are just a few of the metrics contributing to FOCS's Value grade of B and SEIC's Value grade of C.

FOCS has seen stronger estimate revision activity and sports more attractive valuation metrics than SEIC, so it seems like value investors will conclude that FOCS is the superior option right now.


5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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
 
Focus Financial Partners Inc. (FOCS): Free Stock Analysis Report
 
SEI Investments Company (SEIC): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue