FHI or TPG: Which Is the Better Value Stock Right Now?

Investors with an interest in Financial - Investment Management stocks have likely encountered both Federated Hermes (FHI) and TPG Inc. (TPG). 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.Right now, Federated Hermes is sporting a Zacks Rank of #1 (Strong Buy), while TPG Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that FHI likely has seen a stronger improvement to its earnings outlook than TPG has recently. But this is just one piece of the puzzle 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.FHI currently has a forward P/E ratio of 10.32, while TPG has a forward P/E of 23.88. We also note that FHI has a PEG ratio of 0.52. 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. TPG currently has a PEG ratio of 1.04.Another notable valuation metric for FHI is its P/B ratio of 3.26. 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, TPG has a P/B of 5.71.These metrics, and several others, help FHI earn a Value grade of B, while TPG has been given a Value grade of D.FHI sticks out from TPG in both our Zacks Rank and Style Scores models, so value investors will likely feel that FHI is the better option right now.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free 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 Federated Hermes, Inc. (FHI): Free Stock Analysis Report TPG Inc. (TPG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks