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PSFE vs. FOUR: Which Stock Is the Better Value Option?

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Investors with an interest in Financial Transaction Services stocks have likely encountered both Paysafe Limited (PSFE - Free Report) and Shift4 Payments (FOUR - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.

Paysafe Limited and Shift4 Payments are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. 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.

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.

PSFE currently has a forward P/E ratio of 5.04, while FOUR has a forward P/E of 15.68. We also note that PSFE has a PEG ratio of 0.28. 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. FOUR currently has a PEG ratio of 0.51.

Another notable valuation metric for PSFE is its P/B ratio of 0.83. 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, FOUR has a P/B of 7.64.

Based on these metrics and many more, PSFE holds a Value grade of A, while FOUR has a Value grade of C.

Both PSFE and FOUR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PSFE is the superior value option right now.


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Shift4 Payments, Inc. (FOUR) - free report >>

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