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STNE vs. PYCR: Which Stock Is the Better Value Option?
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Investors with an interest in Internet - Software stocks have likely encountered both StoneCo Ltd. (STNE - Free Report) and Paycor HCM, Inc. (PYCR - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
StoneCo Ltd. and Paycor HCM, Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that STNE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
STNE currently has a forward P/E ratio of 9.09, while PYCR has a forward P/E of 30.48. We also note that STNE has a PEG ratio of 0.39. 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. PYCR currently has a PEG ratio of 2.38.
Another notable valuation metric for STNE is its P/B ratio of 1.17. 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, PYCR has a P/B of 2.24.
These are just a few of the metrics contributing to STNE's Value grade of B and PYCR's Value grade of D.
STNE stands above PYCR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that STNE is the superior value option right now.
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STNE vs. PYCR: Which Stock Is the Better Value Option?
Investors with an interest in Internet - Software stocks have likely encountered both StoneCo Ltd. (STNE - Free Report) and Paycor HCM, Inc. (PYCR - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
StoneCo Ltd. and Paycor HCM, Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that STNE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
STNE currently has a forward P/E ratio of 9.09, while PYCR has a forward P/E of 30.48. We also note that STNE has a PEG ratio of 0.39. 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. PYCR currently has a PEG ratio of 2.38.
Another notable valuation metric for STNE is its P/B ratio of 1.17. 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, PYCR has a P/B of 2.24.
These are just a few of the metrics contributing to STNE's Value grade of B and PYCR's Value grade of D.
STNE stands above PYCR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that STNE is the superior value option right now.