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QFIN vs. SYM: Which Stock Is the Better Value Option?

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Investors interested in Technology Services stocks are likely familiar with Qifu Technology, Inc. (QFIN - Free Report) and Symbotic Inc. (SYM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Qifu Technology, Inc. has a Zacks Rank of #1 (Strong Buy), while Symbotic Inc. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that QFIN likely has seen a stronger improvement to its earnings outlook than SYM has recently. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

QFIN currently has a forward P/E ratio of 5.85, while SYM has a forward P/E of 84.54. We also note that QFIN has a PEG ratio of 0.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SYM currently has a PEG ratio of 2.82.

Another notable valuation metric for QFIN is its P/B ratio of 1.92. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SYM has a P/B of 32.78.

These are just a few of the metrics contributing to QFIN's Value grade of A and SYM's Value grade of F.

QFIN 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 QFIN is likely the superior value option right now.


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