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PAGS vs. MA: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Financial Transaction Services sector have probably already heard of PagSeguro Digital Ltd. (PAGS - Free Report) and MasterCard (MA - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, PagSeguro Digital Ltd. has a Zacks Rank of #1 (Strong Buy), while MasterCard has a Zacks Rank of #3 (Hold). This means that PAGS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
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.
PAGS currently has a forward P/E ratio of 11.08, while MA has a forward P/E of 32.37. We also note that PAGS has a PEG ratio of 1.08. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MA currently has a PEG ratio of 2.
Another notable valuation metric for PAGS is its P/B ratio of 1.67. 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, MA has a P/B of 61.97.
Based on these metrics and many more, PAGS holds a Value grade of A, while MA has a Value grade of D.
PAGS sticks out from MA in both our Zacks Rank and Style Scores models, so value investors will likely feel that PAGS is the better option right now.
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PAGS vs. MA: Which Stock Is the Better Value Option?
Investors interested in stocks from the Financial Transaction Services sector have probably already heard of PagSeguro Digital Ltd. (PAGS - Free Report) and MasterCard (MA - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, PagSeguro Digital Ltd. has a Zacks Rank of #1 (Strong Buy), while MasterCard has a Zacks Rank of #3 (Hold). This means that PAGS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
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.
PAGS currently has a forward P/E ratio of 11.08, while MA has a forward P/E of 32.37. We also note that PAGS has a PEG ratio of 1.08. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MA currently has a PEG ratio of 2.
Another notable valuation metric for PAGS is its P/B ratio of 1.67. 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, MA has a P/B of 61.97.
Based on these metrics and many more, PAGS holds a Value grade of A, while MA has a Value grade of D.
PAGS sticks out from MA in both our Zacks Rank and Style Scores models, so value investors will likely feel that PAGS is the better option right now.