Investors interested in Financial Transaction Services stocks are likely familiar with Paysafe Limited (PSFE - Free Report) and DLocal (DLO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Paysafe Limited has a Zacks Rank of #1 (Strong Buy), while DLocal has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that PSFE likely has seen a stronger improvement to its earnings outlook than DLO 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.
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.
PSFE currently has a forward P/E ratio of 5.43, while DLO has a forward P/E of 34.66. We also note that PSFE has a PEG ratio of 0.54. 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. DLO currently has a PEG ratio of 1.08.
Another notable valuation metric for PSFE is its P/B ratio of 0.85. 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, DLO has a P/B of 14.95.
These are just a few of the metrics contributing to PSFE's Value grade of B and DLO's Value grade of D.
PSFE has seen stronger estimate revision activity and sports more attractive valuation metrics than DLO, so it seems like value investors will conclude that PSFE is the superior option right now.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Investors interested in Financial Transaction Services stocks are likely familiar with Paysafe Limited (PSFE - Free Report) and DLocal (DLO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Paysafe Limited has a Zacks Rank of #1 (Strong Buy), while DLocal has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that PSFE likely has seen a stronger improvement to its earnings outlook than DLO 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.
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.
PSFE currently has a forward P/E ratio of 5.43, while DLO has a forward P/E of 34.66. We also note that PSFE has a PEG ratio of 0.54. 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. DLO currently has a PEG ratio of 1.08.
Another notable valuation metric for PSFE is its P/B ratio of 0.85. 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, DLO has a P/B of 14.95.
These are just a few of the metrics contributing to PSFE's Value grade of B and DLO's Value grade of D.
PSFE has seen stronger estimate revision activity and sports more attractive valuation metrics than DLO, so it seems like value investors will conclude that PSFE is the superior option right now.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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