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STNE or BILL: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Internet - Software sector have probably already heard of StoneCo Ltd. (STNE - Free Report) and BILL Holdings (BILL - 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.
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, StoneCo Ltd. is sporting a Zacks Rank of #2 (Buy), while BILL Holdings has a Zacks Rank of #3 (Hold). This means that STNE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
STNE currently has a forward P/E ratio of 19.18, while BILL has a forward P/E of 70.52. We also note that STNE has a PEG ratio of 0.35. 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. BILL currently has a PEG ratio of 2.35.
Another notable valuation metric for STNE is its P/B ratio of 1.52. 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, BILL has a P/B of 2.68.
These metrics, and several others, help STNE earn a Value grade of A, while BILL has been given a Value grade of F.
STNE 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 STNE is likely the superior value option right now.
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STNE or BILL: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Internet - Software sector have probably already heard of StoneCo Ltd. (STNE - Free Report) and BILL Holdings (BILL - 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.
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, StoneCo Ltd. is sporting a Zacks Rank of #2 (Buy), while BILL Holdings has a Zacks Rank of #3 (Hold). This means that STNE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
STNE currently has a forward P/E ratio of 19.18, while BILL has a forward P/E of 70.52. We also note that STNE has a PEG ratio of 0.35. 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. BILL currently has a PEG ratio of 2.35.
Another notable valuation metric for STNE is its P/B ratio of 1.52. 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, BILL has a P/B of 2.68.
These metrics, and several others, help STNE earn a Value grade of A, while BILL has been given a Value grade of F.
STNE 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 STNE is likely the superior value option right now.