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Fidelity National Information Services, Inc. (FIS) - free report >>
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Fidelity National Information Services, Inc. (FIS) - free report >>
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FIS or DLO: Which Is the Better Value Stock Right Now?
Investors interested in Financial Transaction Services stocks are likely familiar with Fidelity National Information Services (FIS - Free Report) and DLocal (DLO - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Fidelity National Information Services has a Zacks Rank of #2 (Buy), while DLocal has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FIS has an improving earnings outlook. However, value investors will care about much more than just this.
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.
FIS currently has a forward P/E ratio of 14.91, while DLO has a forward P/E of 24.66. We also note that FIS has a PEG ratio of 0.88. 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. DLO currently has a PEG ratio of 0.96.
Another notable valuation metric for FIS is its P/B ratio of 2.15. 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, DLO has a P/B of 9.46.
These are just a few of the metrics contributing to FIS's Value grade of A and DLO's Value grade of C.
FIS stands above DLO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FIS is the superior value option right now.