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STNE or BILL: Which Is the Better Value Stock Right Now?
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Investors interested in Internet - Software stocks are likely familiar with StoneCo Ltd. (STNE - Free Report) and BILL Holdings (BILL - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
StoneCo Ltd. has a Zacks Rank of #2 (Buy), while BILL Holdings has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that STNE is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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 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.
STNE currently has a forward P/E ratio of 19.22, while BILL has a forward P/E of 75.75. We also note that STNE has a PEG ratio of 0.35. 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. BILL currently has a PEG ratio of 2.53.
Another notable valuation metric for STNE is its P/B ratio of 1.64. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BILL has a P/B of 2.88.
These are just a few of the metrics contributing to STNE's Value grade of A and BILL's Value grade of F.
STNE has seen stronger estimate revision activity and sports more attractive valuation metrics than BILL, so it seems like value investors will conclude that STNE is the superior option right now.
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STNE or BILL: Which Is the Better Value Stock Right Now?
Investors interested in Internet - Software stocks are likely familiar with StoneCo Ltd. (STNE - Free Report) and BILL Holdings (BILL - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
StoneCo Ltd. has a Zacks Rank of #2 (Buy), while BILL Holdings has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that STNE is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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 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.
STNE currently has a forward P/E ratio of 19.22, while BILL has a forward P/E of 75.75. We also note that STNE has a PEG ratio of 0.35. 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. BILL currently has a PEG ratio of 2.53.
Another notable valuation metric for STNE is its P/B ratio of 1.64. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BILL has a P/B of 2.88.
These are just a few of the metrics contributing to STNE's Value grade of A and BILL's Value grade of F.
STNE has seen stronger estimate revision activity and sports more attractive valuation metrics than BILL, so it seems like value investors will conclude that STNE is the superior option right now.