JHG vs. TROW: Which Stock Is the Better Value Option?
Investors with an interest in Financial - Investment Management stocks have likely encountered both Janus Henderson Group plc (JHG) and T. Rowe Price (TROW). 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Janus Henderson Group plc and T. Rowe Price are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. Investors should feel comfortable knowing that JHG likely has seen a stronger improvement to its earnings outlook than TROW has recently. But this is only part of the picture 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
JHG currently has a forward P/E ratio of 8.56, while TROW has a forward P/E of 14.22. We also note that JHG has a PEG ratio of 0.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TROW currently has a PEG ratio of 1.20.
Another notable valuation metric for JHG is its P/B ratio of 1.14. 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, TROW has a P/B of 4.98.
Based on these metrics and many more, JHG holds a Value grade of A, while TROW has a Value grade of D.
JHG stands above TROW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that JHG is the superior value option right now.
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Janus Henderson Group plc (JHG) : Free Stock Analysis Report
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