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FIS vs. DLO: Which Stock Is the Better Value Option?
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Investors with an interest in Financial Transaction Services stocks have likely encountered both Fidelity National Information Services (FIS - Free Report) and DLocal (DLO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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, Fidelity National Information Services has a Zacks Rank of #2 (Buy), while DLocal 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 FIS has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 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.
FIS currently has a forward P/E ratio of 8.36, while DLO has a forward P/E of 31.90. We also note that FIS has a PEG ratio of 0.81. 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. DLO currently has a PEG ratio of 1.
Another notable valuation metric for FIS is its P/B ratio of 1.45. 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, DLO has a P/B of 13.76.
These are just a few of the metrics contributing to FIS's Value grade of B and DLO's Value grade of D.
FIS 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 FIS is likely the superior value option right now.
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FIS vs. DLO: Which Stock Is the Better Value Option?
Investors with an interest in Financial Transaction Services stocks have likely encountered both Fidelity National Information Services (FIS - Free Report) and DLocal (DLO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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, Fidelity National Information Services has a Zacks Rank of #2 (Buy), while DLocal 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 FIS has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 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.
FIS currently has a forward P/E ratio of 8.36, while DLO has a forward P/E of 31.90. We also note that FIS has a PEG ratio of 0.81. 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. DLO currently has a PEG ratio of 1.
Another notable valuation metric for FIS is its P/B ratio of 1.45. 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, DLO has a P/B of 13.76.
These are just a few of the metrics contributing to FIS's Value grade of B and DLO's Value grade of D.
FIS 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 FIS is likely the superior value option right now.