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PSFE vs. EFX: 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 Paysafe Limited (PSFE - Free Report) and Equifax (EFX - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Paysafe Limited has a Zacks Rank of #2 (Buy), while Equifax has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PSFE is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
PSFE currently has a forward P/E ratio of 4.74, while EFX has a forward P/E of 28.96. We also note that PSFE has a PEG ratio of 0.53. 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. EFX currently has a PEG ratio of 1.97.
Another notable valuation metric for PSFE is its P/B ratio of 0.73. 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, EFX has a P/B of 6.24.
These metrics, and several others, help PSFE earn a Value grade of B, while EFX has been given a Value grade of C.
PSFE sticks out from EFX in both our Zacks Rank and Style Scores models, so value investors will likely feel that PSFE is the better option right now.
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PSFE vs. EFX: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Financial Transaction Services sector have probably already heard of Paysafe Limited (PSFE - Free Report) and Equifax (EFX - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Paysafe Limited has a Zacks Rank of #2 (Buy), while Equifax has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PSFE is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
PSFE currently has a forward P/E ratio of 4.74, while EFX has a forward P/E of 28.96. We also note that PSFE has a PEG ratio of 0.53. 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. EFX currently has a PEG ratio of 1.97.
Another notable valuation metric for PSFE is its P/B ratio of 0.73. 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, EFX has a P/B of 6.24.
These metrics, and several others, help PSFE earn a Value grade of B, while EFX has been given a Value grade of C.
PSFE sticks out from EFX in both our Zacks Rank and Style Scores models, so value investors will likely feel that PSFE is the better option right now.