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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 is more attractive to value investors? We'll need to take a closer look to find out.

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.

Qifu Technology, Inc. has a Zacks Rank of #2 (Buy), while Symbotic Inc. has a Zacks Rank of #5 (Strong Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that QFIN has an improving earnings outlook. But this is only part of the picture for value investors.

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 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 6.08, while SYM has a forward P/E of 237.57. We also note that QFIN has a PEG ratio of 0.54. 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 7.92.

Another notable valuation metric for QFIN is its P/B ratio of 2.13. 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 66.93.

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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