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GPN or MA: Which Is the Better Value Stock Right Now?
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Investors with an interest in Financial Transaction Services stocks have likely encountered both Global Payments (GPN - Free Report) and MasterCard (MA - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Global Payments and MasterCard are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GPN is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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.
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.
GPN currently has a forward P/E ratio of 4.95, while MA has a forward P/E of 26.75. We also note that GPN has a PEG ratio of 0.43. 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. MA currently has a PEG ratio of 1.67.
Another notable valuation metric for GPN is its P/B ratio of 0.7. 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, MA has a P/B of 60.09.
Based on these metrics and many more, GPN holds a Value grade of A, while MA has a Value grade of D.
GPN has seen stronger estimate revision activity and sports more attractive valuation metrics than MA, so it seems like value investors will conclude that GPN is the superior option right now.
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GPN or MA: Which Is the Better Value Stock Right Now?
Investors with an interest in Financial Transaction Services stocks have likely encountered both Global Payments (GPN - Free Report) and MasterCard (MA - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Global Payments and MasterCard are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GPN is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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.
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.
GPN currently has a forward P/E ratio of 4.95, while MA has a forward P/E of 26.75. We also note that GPN has a PEG ratio of 0.43. 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. MA currently has a PEG ratio of 1.67.
Another notable valuation metric for GPN is its P/B ratio of 0.7. 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, MA has a P/B of 60.09.
Based on these metrics and many more, GPN holds a Value grade of A, while MA has a Value grade of D.
GPN has seen stronger estimate revision activity and sports more attractive valuation metrics than MA, so it seems like value investors will conclude that GPN is the superior option right now.