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FI vs. RBA: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Financial Transaction Services sector might want to consider either Fiserv (FI - Free Report) or RB Global (RBA - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Currently, Fiserv has a Zacks Rank of #2 (Buy), while RB Global 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 FI 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.
FI currently has a forward P/E ratio of 15.95, while RBA has a forward P/E of 26.37. We also note that FI has a PEG ratio of 1.23. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RBA currently has a PEG ratio of 3.77.
Another notable valuation metric for FI is its P/B ratio of 2.37. 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, RBA has a P/B of 2.48.
Based on these metrics and many more, FI holds a Value grade of B, while RBA has a Value grade of D.
FI stands above RBA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FI is the superior value option right now.
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FI vs. RBA: Which Stock Is the Better Value Option?
Investors looking for stocks in the Financial Transaction Services sector might want to consider either Fiserv (FI - Free Report) or RB Global (RBA - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Currently, Fiserv has a Zacks Rank of #2 (Buy), while RB Global 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 FI 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.
FI currently has a forward P/E ratio of 15.95, while RBA has a forward P/E of 26.37. We also note that FI has a PEG ratio of 1.23. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RBA currently has a PEG ratio of 3.77.
Another notable valuation metric for FI is its P/B ratio of 2.37. 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, RBA has a P/B of 2.48.
Based on these metrics and many more, FI holds a Value grade of B, while RBA has a Value grade of D.
FI stands above RBA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FI is the superior value option right now.