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SYF vs. HGBL: Which Stock Is the Better Value Option?
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Investors interested in Financial - Miscellaneous Services stocks are likely familiar with Synchrony (SYF - Free Report) and Heritage Global Inc. (HGBL - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Right now, Synchrony is sporting a Zacks Rank of #2 (Buy), while Heritage Global Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SYF likely has seen a stronger improvement to its earnings outlook than HGBL 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.
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.
SYF currently has a forward P/E ratio of 8.40, while HGBL has a forward P/E of 14.22. We also note that SYF has a PEG ratio of 0.93. 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. HGBL currently has a PEG ratio of 0.95.
Another notable valuation metric for SYF is its P/B ratio of 1.79. 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, HGBL has a P/B of 6.05.
These metrics, and several others, help SYF earn a Value grade of A, while HGBL has been given a Value grade of C.
SYF 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 SYF is likely the superior value option right now.
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SYF vs. HGBL: Which Stock Is the Better Value Option?
Investors interested in Financial - Miscellaneous Services stocks are likely familiar with Synchrony (SYF - Free Report) and Heritage Global Inc. (HGBL - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Right now, Synchrony is sporting a Zacks Rank of #2 (Buy), while Heritage Global Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SYF likely has seen a stronger improvement to its earnings outlook than HGBL 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.
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.
SYF currently has a forward P/E ratio of 8.40, while HGBL has a forward P/E of 14.22. We also note that SYF has a PEG ratio of 0.93. 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. HGBL currently has a PEG ratio of 0.95.
Another notable valuation metric for SYF is its P/B ratio of 1.79. 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, HGBL has a P/B of 6.05.
These metrics, and several others, help SYF earn a Value grade of A, while HGBL has been given a Value grade of C.
SYF 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 SYF is likely the superior value option right now.