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

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Investors interested in stocks from the Technology Services sector have probably already heard of 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 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.

Qifu Technology, Inc. has a Zacks Rank of #2 (Buy), while Symbotic Inc. has a Zacks Rank of #5 (Strong Sell) 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 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 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 5.77, while SYM has a forward P/E of 145.49. We also note that QFIN has a PEG ratio of 0.51. 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 4.85.

Another notable valuation metric for QFIN is its P/B ratio of 2.03. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, SYM has a P/B of 40.99.

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

QFIN sticks out from SYM in both our Zacks Rank and Style Scores models, so value investors will likely feel that QFIN is the better option right now.


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