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FUTU vs. PLTR: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Technology Services sector have probably already heard of Futu Holdings Limited Sponsored ADR (FUTU - Free Report) and Palantir Technologies Inc. (PLTR - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Futu Holdings Limited Sponsored ADR is sporting a Zacks Rank of #2 (Buy), while Palantir Technologies Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that FUTU is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
FUTU currently has a forward P/E ratio of 11.34, while PLTR has a forward P/E of 74.34. We also note that FUTU has a PEG ratio of 0.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PLTR currently has a PEG ratio of 2.84.
Another notable valuation metric for FUTU is its P/B ratio of 2.62. 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, PLTR has a P/B of 16.25.
Based on these metrics and many more, FUTU holds a Value grade of B, while PLTR has a Value grade of F.
FUTU 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 FUTU is likely the superior value option right now.
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FUTU vs. PLTR: Which Stock Is the Better Value Option?
Investors interested in stocks from the Technology Services sector have probably already heard of Futu Holdings Limited Sponsored ADR (FUTU - Free Report) and Palantir Technologies Inc. (PLTR - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Futu Holdings Limited Sponsored ADR is sporting a Zacks Rank of #2 (Buy), while Palantir Technologies Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that FUTU is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
FUTU currently has a forward P/E ratio of 11.34, while PLTR has a forward P/E of 74.34. We also note that FUTU has a PEG ratio of 0.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PLTR currently has a PEG ratio of 2.84.
Another notable valuation metric for FUTU is its P/B ratio of 2.62. 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, PLTR has a P/B of 16.25.
Based on these metrics and many more, FUTU holds a Value grade of B, while PLTR has a Value grade of F.
FUTU 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 FUTU is likely the superior value option right now.