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FLT vs. V: Which Stock Is the Better Value Option?
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Investors interested in Financial Transaction Services stocks are likely familiar with FleetCor Technologies and Visa (V - 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, FleetCor Technologies has a Zacks Rank of #2 (Buy), while Visa 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 FLT has an improving earnings outlook. But this is only part of the picture for value investors.
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.
FLT currently has a forward P/E ratio of 14.91, while V has a forward P/E of 27.43. We also note that FLT has a PEG ratio of 1.21. 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. V currently has a PEG ratio of 1.83.
Another notable valuation metric for FLT is its P/B ratio of 6.95. 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, V has a P/B of 13.54.
These metrics, and several others, help FLT earn a Value grade of B, while V has been given a Value grade of D.
FLT stands above V thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FLT is the superior value option right now.
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FLT vs. V: Which Stock Is the Better Value Option?
Investors interested in Financial Transaction Services stocks are likely familiar with FleetCor Technologies and Visa (V - 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, FleetCor Technologies has a Zacks Rank of #2 (Buy), while Visa 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 FLT has an improving earnings outlook. But this is only part of the picture for value investors.
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.
FLT currently has a forward P/E ratio of 14.91, while V has a forward P/E of 27.43. We also note that FLT has a PEG ratio of 1.21. 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. V currently has a PEG ratio of 1.83.
Another notable valuation metric for FLT is its P/B ratio of 6.95. 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, V has a P/B of 13.54.
These metrics, and several others, help FLT earn a Value grade of B, while V has been given a Value grade of D.
FLT stands above V thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FLT is the superior value option right now.