We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
INTR or AXP: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in Financial - Miscellaneous Services stocks are likely familiar with Inter & Co. Inc. (INTR - Free Report) and American Express (AXP - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Inter & Co. Inc. has a Zacks Rank of #2 (Buy), while American Express has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that INTR likely has seen a stronger improvement to its earnings outlook than AXP has recently. But this is just one piece of the puzzle 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
INTR currently has a forward P/E ratio of 16.24, while AXP has a forward P/E of 21.54. We also note that INTR has a PEG ratio of 0.44. 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. AXP currently has a PEG ratio of 1.74.
Another notable valuation metric for INTR is its P/B ratio of 2.4. 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, AXP has a P/B of 7.08.
These are just a few of the metrics contributing to INTR's Value grade of A and AXP's Value grade of C.
INTR sticks out from AXP in both our Zacks Rank and Style Scores models, so value investors will likely feel that INTR is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
INTR or AXP: Which Is the Better Value Stock Right Now?
Investors interested in Financial - Miscellaneous Services stocks are likely familiar with Inter & Co. Inc. (INTR - Free Report) and American Express (AXP - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Inter & Co. Inc. has a Zacks Rank of #2 (Buy), while American Express has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that INTR likely has seen a stronger improvement to its earnings outlook than AXP has recently. But this is just one piece of the puzzle 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
INTR currently has a forward P/E ratio of 16.24, while AXP has a forward P/E of 21.54. We also note that INTR has a PEG ratio of 0.44. 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. AXP currently has a PEG ratio of 1.74.
Another notable valuation metric for INTR is its P/B ratio of 2.4. 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, AXP has a P/B of 7.08.
These are just a few of the metrics contributing to INTR's Value grade of A and AXP's Value grade of C.
INTR sticks out from AXP in both our Zacks Rank and Style Scores models, so value investors will likely feel that INTR is the better option right now.