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FUTU vs. PLTR: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Technology Services sector have probably already heard of Futu Holdings Limited Sponsored ADR (FUTU - Free Report) and Palantir Technologies Inc. (PLTR - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Futu Holdings Limited Sponsored ADR is sporting a Zacks Rank of #1 (Strong Buy), while Palantir Technologies Inc. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FUTU has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
FUTU currently has a forward P/E ratio of 13.57, while PLTR has a forward P/E of 72.22. We also note that FUTU has a PEG ratio of 0.79. 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. PLTR currently has a PEG ratio of 1.27.
Another notable valuation metric for FUTU is its P/B ratio of 3.02. 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, PLTR has a P/B of 11.77.
These metrics, and several others, help FUTU earn a Value grade of B, while PLTR has been given a Value grade of F.
FUTU 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 FUTU is likely the superior value option right now.
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FUTU vs. PLTR: Which Stock Is the Better Value Option?
Investors interested in stocks from the Technology Services sector have probably already heard of Futu Holdings Limited Sponsored ADR (FUTU - Free Report) and Palantir Technologies Inc. (PLTR - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Futu Holdings Limited Sponsored ADR is sporting a Zacks Rank of #1 (Strong Buy), while Palantir Technologies Inc. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FUTU has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
FUTU currently has a forward P/E ratio of 13.57, while PLTR has a forward P/E of 72.22. We also note that FUTU has a PEG ratio of 0.79. 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. PLTR currently has a PEG ratio of 1.27.
Another notable valuation metric for FUTU is its P/B ratio of 3.02. 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, PLTR has a P/B of 11.77.
These metrics, and several others, help FUTU earn a Value grade of B, while PLTR has been given a Value grade of F.
FUTU 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 FUTU is likely the superior value option right now.