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NVEI or EFX: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Financial Transaction Services sector might want to consider either Nuvei Corporation (NVEI - Free Report) or Equifax (EFX - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Nuvei Corporation is sporting a Zacks Rank of #2 (Buy), while Equifax has a Zacks Rank of #5 (Strong Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NVEI 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 are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

NVEI currently has a forward P/E ratio of 14.45, while EFX has a forward P/E of 37.55. We also note that NVEI has a PEG ratio of 1.09. 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. EFX currently has a PEG ratio of 3.07.

Another notable valuation metric for NVEI is its P/B ratio of 1.69. 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, EFX has a P/B of 7.13.

These are just a few of the metrics contributing to NVEI's Value grade of B and EFX's Value grade of F.

NVEI has seen stronger estimate revision activity and sports more attractive valuation metrics than EFX, so it seems like value investors will conclude that NVEI is the superior option right now.


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