Investors interested in Financial - Investment Bank stocks are likely familiar with UP Fintech Holding Limited (TIGR) and JPMorgan Chase & Co. (JPM). 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.
Currently, UP Fintech Holding Limited has a Zacks Rank of #2 (Buy), while JPMorgan Chase & Co. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TIGR has an improving earnings outlook. 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.
TIGR currently has a forward P/E ratio of 12.69, while JPM has a forward P/E of 15.49. We also note that TIGR has a PEG ratio of 0.66. 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. JPM currently has a PEG ratio of 1.96.
Another notable valuation metric for TIGR is its P/B ratio of 2.49. 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, JPM has a P/B of 2.51.
These are just a few of the metrics contributing to TIGR's Value grade of B and JPM's Value grade of F.
TIGR sticks out from JPM in both our Zacks Rank and Style Scores models, so value investors will likely feel that TIGR is the better option right now.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
