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PSFE or ADYEY: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Financial Transaction Services sector might want to consider either Paysafe Limited (PSFE - Free Report) or Adyen N.V. Unsponsored ADR (ADYEY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Paysafe Limited has a Zacks Rank of #1 (Strong Buy), while Adyen N.V. Unsponsored ADR has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PSFE has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PSFE currently has a forward P/E ratio of 24.66, while ADYEY has a forward P/E of 56.71. We also note that PSFE has a PEG ratio of 2.03. 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. ADYEY currently has a PEG ratio of 2.18.
Another notable valuation metric for PSFE is its P/B ratio of 1.12. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ADYEY has a P/B of 27.94.
These metrics, and several others, help PSFE earn a Value grade of B, while ADYEY has been given a Value grade of F.
PSFE 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 PSFE is likely the superior value option right now.
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PSFE or ADYEY: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Financial Transaction Services sector might want to consider either Paysafe Limited (PSFE - Free Report) or Adyen N.V. Unsponsored ADR (ADYEY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Paysafe Limited has a Zacks Rank of #1 (Strong Buy), while Adyen N.V. Unsponsored ADR has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PSFE has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PSFE currently has a forward P/E ratio of 24.66, while ADYEY has a forward P/E of 56.71. We also note that PSFE has a PEG ratio of 2.03. 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. ADYEY currently has a PEG ratio of 2.18.
Another notable valuation metric for PSFE is its P/B ratio of 1.12. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ADYEY has a P/B of 27.94.
These metrics, and several others, help PSFE earn a Value grade of B, while ADYEY has been given a Value grade of F.
PSFE 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 PSFE is likely the superior value option right now.