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QFIN or SYM: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Technology Services sector might want to consider either Qifu Technology, Inc. (QFIN - Free Report) or Symbotic Inc. (SYM - 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Qifu Technology, Inc. and Symbotic Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #5 (Strong Sell), respectively, right now. This means that QFIN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

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.

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.

QFIN currently has a forward P/E ratio of 6.38, while SYM has a forward P/E of 133.59. We also note that QFIN 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. SYM currently has a PEG ratio of 4.45.

Another notable valuation metric for QFIN is its P/B ratio of 2.10. 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 37.63.

Based on these metrics and many more, QFIN holds a Value grade of A, while SYM has a 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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