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WEX vs. MA: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Financial Transaction Services sector have probably already heard of Wex (WEX - Free Report) and MasterCard (MA - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Currently, Wex has a Zacks Rank of #2 (Buy), while MasterCard 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 WEX has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
WEX currently has a forward P/E ratio of 11.30, while MA has a forward P/E of 29.96. We also note that WEX has a PEG ratio of 1.10. 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. MA currently has a PEG ratio of 1.64.
Another notable valuation metric for WEX is its P/B ratio of 4.14. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, MA has a P/B of 53.94.
These metrics, and several others, help WEX earn a Value grade of B, while MA has been given a Value grade of D.
WEX is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that WEX is likely the superior value option right now.
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WEX vs. MA: Which Stock Is the Better Value Option?
Investors interested in stocks from the Financial Transaction Services sector have probably already heard of Wex (WEX - Free Report) and MasterCard (MA - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Currently, Wex has a Zacks Rank of #2 (Buy), while MasterCard 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 WEX has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
WEX currently has a forward P/E ratio of 11.30, while MA has a forward P/E of 29.96. We also note that WEX has a PEG ratio of 1.10. 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. MA currently has a PEG ratio of 1.64.
Another notable valuation metric for WEX is its P/B ratio of 4.14. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, MA has a P/B of 53.94.
These metrics, and several others, help WEX earn a Value grade of B, while MA has been given a Value grade of D.
WEX is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that WEX is likely the superior value option right now.