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STNE or PYCR: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Internet - Software sector might want to consider either StoneCo Ltd. (STNE - Free Report) or Paycor HCM, Inc. . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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.
Right now, StoneCo Ltd. is sporting a Zacks Rank of #2 (Buy), while Paycor HCM, Inc. 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 STNE has an improving earnings outlook. 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
STNE currently has a forward P/E ratio of 9.62, while PYCR has a forward P/E of 39.75. We also note that STNE has a PEG ratio of 0.44. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PYCR currently has a PEG ratio of 2.06.
Another notable valuation metric for STNE is its P/B ratio of 1.61. 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 3.11.
Based on these metrics and many more, STNE holds a Value grade of B, while PYCR has a Value grade of F.
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 or PYCR: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Internet - Software sector might want to consider either StoneCo Ltd. (STNE - Free Report) or Paycor HCM, Inc. . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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.
Right now, StoneCo Ltd. is sporting a Zacks Rank of #2 (Buy), while Paycor HCM, Inc. 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 STNE has an improving earnings outlook. 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
STNE currently has a forward P/E ratio of 9.62, while PYCR has a forward P/E of 39.75. We also note that STNE has a PEG ratio of 0.44. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PYCR currently has a PEG ratio of 2.06.
Another notable valuation metric for STNE is its P/B ratio of 1.61. 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 3.11.
Based on these metrics and many more, STNE holds a Value grade of B, while PYCR has a Value grade of F.
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.