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PSFE or FOUR: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Financial Transaction Services sector might want to consider either Paysafe Limited (PSFE - Free Report) or Shift4 Payments (FOUR - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Paysafe Limited and Shift4 Payments are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. This means that PSFE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

PSFE currently has a forward P/E ratio of 5.71, while FOUR has a forward P/E of 19.15. We also note that PSFE has a PEG ratio of 0.30. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FOUR currently has a PEG ratio of 0.62.

Another notable valuation metric for PSFE is its P/B ratio of 0.95. 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 9.04.

These are just a few of the metrics contributing to PSFE's Value grade of A and FOUR's Value grade of C.

PSFE stands above FOUR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PSFE is the superior value option right now.


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

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