TIGR or TW: Which Is the Better Value Stock Right Now?

Investors interested in Financial - Investment Bank stocks are likely familiar with UP Fintech Holding Limited (TIGR) and Tradeweb Markets (TW). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

UP Fintech Holding Limited has a Zacks Rank of #2 (Buy), while Tradeweb Markets has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TIGR is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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.

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.

TIGR currently has a forward P/E ratio of 13.94, while TW has a forward P/E of 32.60. We also note that TIGR has a PEG ratio of 0.73. 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. TW currently has a PEG ratio of 1.86.

Another notable valuation metric for TIGR is its P/B ratio of 2.73. 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, TW has a P/B of 3.94.

These metrics, and several others, help TIGR earn a Value grade of B, while TW has been given a Value grade of D.

TIGR sticks out from TW 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).

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