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PAGS vs. PSFE: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Financial Transaction Services sector have probably already heard of PagSeguro Digital Ltd. (PAGS - Free Report) and Paysafe Limited (PSFE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both PagSeguro Digital Ltd. and Paysafe Limited are sporting a Zacks Rank of # 1 (Strong Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. 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 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.
PAGS currently has a forward P/E ratio of 8.44, while PSFE has a forward P/E of 29.56. We also note that PAGS has a PEG ratio of 0.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PSFE currently has a PEG ratio of 2.43.
Another notable valuation metric for PAGS is its P/B ratio of 1.16. 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, PSFE has a P/B of 1.33.
Based on these metrics and many more, PAGS holds a Value grade of A, while PSFE has a Value grade of C.
Both PAGS and PSFE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PAGS is the superior value option right now.
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PAGS vs. PSFE: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Financial Transaction Services sector have probably already heard of PagSeguro Digital Ltd. (PAGS - Free Report) and Paysafe Limited (PSFE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both PagSeguro Digital Ltd. and Paysafe Limited are sporting a Zacks Rank of # 1 (Strong Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. 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 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.
PAGS currently has a forward P/E ratio of 8.44, while PSFE has a forward P/E of 29.56. We also note that PAGS has a PEG ratio of 0.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PSFE currently has a PEG ratio of 2.43.
Another notable valuation metric for PAGS is its P/B ratio of 1.16. 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, PSFE has a P/B of 1.33.
Based on these metrics and many more, PAGS holds a Value grade of A, while PSFE has a Value grade of C.
Both PAGS and PSFE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PAGS is the superior value option right now.