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FISV vs. EFX: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Financial Transaction Services stocks have likely encountered both Fiserv and Equifax (EFX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Fiserv and Equifax are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that FISV's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
FISV currently has a forward P/E ratio of 16, while EFX has a forward P/E of 27.10. We also note that FISV has a PEG ratio of 1.31. 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. EFX currently has a PEG ratio of 1.88.
Another notable valuation metric for FISV is its P/B ratio of 2.36. 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, EFX has a P/B of 6.
These metrics, and several others, help FISV earn a Value grade of B, while EFX has been given a Value grade of D.
FISV has seen stronger estimate revision activity and sports more attractive valuation metrics than EFX, so it seems like value investors will conclude that FISV is the superior option right now.
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FISV vs. EFX: Which Stock Should Value Investors Buy Now?
Investors with an interest in Financial Transaction Services stocks have likely encountered both Fiserv and Equifax (EFX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Fiserv and Equifax are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that FISV's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
FISV currently has a forward P/E ratio of 16, while EFX has a forward P/E of 27.10. We also note that FISV has a PEG ratio of 1.31. 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. EFX currently has a PEG ratio of 1.88.
Another notable valuation metric for FISV is its P/B ratio of 2.36. 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, EFX has a P/B of 6.
These metrics, and several others, help FISV earn a Value grade of B, while EFX has been given a Value grade of D.
FISV has seen stronger estimate revision activity and sports more attractive valuation metrics than EFX, so it seems like value investors will conclude that FISV is the superior option right now.