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EVTC vs. RBA: Which Stock Is the Better Value Option?
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Investors interested in Financial Transaction Services stocks are likely familiar with Evertec (EVTC - Free Report) and RB Global (RBA - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Evertec is sporting a Zacks Rank of #2 (Buy), while RB Global has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EVTC is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
EVTC currently has a forward P/E ratio of 9.79, while RBA has a forward P/E of 30.39. We also note that EVTC has a PEG ratio of 1.40. 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. RBA currently has a PEG ratio of 2.54.
Another notable valuation metric for EVTC is its P/B ratio of 3.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, RBA has a P/B of 3.96.
Based on these metrics and many more, EVTC holds a Value grade of A, while RBA has a Value grade of C.
EVTC stands above RBA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EVTC is the superior value option right now.
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EVTC vs. RBA: Which Stock Is the Better Value Option?
Investors interested in Financial Transaction Services stocks are likely familiar with Evertec (EVTC - Free Report) and RB Global (RBA - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Evertec is sporting a Zacks Rank of #2 (Buy), while RB Global has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EVTC is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
EVTC currently has a forward P/E ratio of 9.79, while RBA has a forward P/E of 30.39. We also note that EVTC has a PEG ratio of 1.40. 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. RBA currently has a PEG ratio of 2.54.
Another notable valuation metric for EVTC is its P/B ratio of 3.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, RBA has a P/B of 3.96.
Based on these metrics and many more, EVTC holds a Value grade of A, while RBA has a Value grade of C.
EVTC stands above RBA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EVTC is the superior value option right now.