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IFS vs. SOFI: Which Stock Is the Better Value Option?
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Investors with an interest in Financial - Miscellaneous Services stocks have likely encountered both Intercorp Financial Services Inc. (IFS - Free Report) and SoFi Technologies, Inc. (SOFI - 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.
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.
Currently, both Intercorp Financial Services Inc. and SoFi Technologies, Inc. are holding a Zacks Rank of #2 (Buy). 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 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.
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.
IFS currently has a forward P/E ratio of 8.59, while SOFI has a forward P/E of 81.67. We also note that IFS has a PEG ratio of 0.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SOFI currently has a PEG ratio of 3.09.
Another notable valuation metric for IFS is its P/B ratio of 1.45. 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, SOFI has a P/B of 4.14.
These are just a few of the metrics contributing to IFS's Value grade of B and SOFI's Value grade of F.
Both IFS and SOFI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that IFS is the superior value option right now.
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IFS vs. SOFI: Which Stock Is the Better Value Option?
Investors with an interest in Financial - Miscellaneous Services stocks have likely encountered both Intercorp Financial Services Inc. (IFS - Free Report) and SoFi Technologies, Inc. (SOFI - 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.
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.
Currently, both Intercorp Financial Services Inc. and SoFi Technologies, Inc. are holding a Zacks Rank of #2 (Buy). 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 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.
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.
IFS currently has a forward P/E ratio of 8.59, while SOFI has a forward P/E of 81.67. We also note that IFS has a PEG ratio of 0.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SOFI currently has a PEG ratio of 3.09.
Another notable valuation metric for IFS is its P/B ratio of 1.45. 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, SOFI has a P/B of 4.14.
These are just a few of the metrics contributing to IFS's Value grade of B and SOFI's Value grade of F.
Both IFS and SOFI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that IFS is the superior value option right now.