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STNE or INFA: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Internet - Software sector might want to consider either StoneCo Ltd. (STNE - Free Report) or Informatica Inc. (INFA - 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.
StoneCo Ltd. and Informatica Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that STNE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
STNE currently has a forward P/E ratio of 11.46, while INFA has a forward P/E of 22.35. We also note that STNE has a PEG ratio of 0.38. 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. INFA currently has a PEG ratio of 2.94.
Another notable valuation metric for STNE is its P/B ratio of 2.68. 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, INFA has a P/B of 3.18.
These are just a few of the metrics contributing to STNE's Value grade of B and INFA's Value grade of D.
STNE stands above INFA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that STNE is the superior value option right now.
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STNE or INFA: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Internet - Software sector might want to consider either StoneCo Ltd. (STNE - Free Report) or Informatica Inc. (INFA - 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.
StoneCo Ltd. and Informatica Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that STNE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
STNE currently has a forward P/E ratio of 11.46, while INFA has a forward P/E of 22.35. We also note that STNE has a PEG ratio of 0.38. 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. INFA currently has a PEG ratio of 2.94.
Another notable valuation metric for STNE is its P/B ratio of 2.68. 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, INFA has a P/B of 3.18.
These are just a few of the metrics contributing to STNE's Value grade of B and INFA's Value grade of D.
STNE stands above INFA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that STNE is the superior value option right now.