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BBSEY vs. CRCL: Which Stock Is the Better Value Option?

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Investors with an interest in Financial - Miscellaneous Services stocks have likely encountered both BB Seguridade Participacoes SA (BBSEY - Free Report) and Circle Internet Group, Inc. (CRCL - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

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.

Currently, BB Seguridade Participacoes SA has a Zacks Rank of #2 (Buy), while Circle Internet Group, Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BBSEY likely has seen a stronger improvement to its earnings outlook than CRCL has recently. But this is only part of the picture for value investors.

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 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.

BBSEY currently has a forward P/E ratio of 8.27, while CRCL has a forward P/E of 89.07. We also note that BBSEY has a PEG ratio of 2.55. 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. CRCL currently has a PEG ratio of 3.71.

Another notable valuation metric for BBSEY is its P/B ratio of 5.74. 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, CRCL has a P/B of 6.24.

These metrics, and several others, help BBSEY earn a Value grade of B, while CRCL has been given a Value grade of D.

BBSEY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BBSEY is likely the superior value option right now.


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