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PIPR or CRCL: Which Is the Better Value Stock Right Now?

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Investors interested in Financial - Miscellaneous Services stocks are likely familiar with Piper Sandler Companies (PIPR - Free Report) and Circle Internet Group, Inc. (CRCL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Piper Sandler Companies has a Zacks Rank of #2 (Buy), while Circle Internet Group, Inc. has a Zacks Rank of #3 (Hold). This means that PIPR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.

PIPR currently has a forward P/E ratio of 16.13, while CRCL has a forward P/E of 156.17. We also note that PIPR has a PEG ratio of 1.65. 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 6.51.

Another notable valuation metric for PIPR is its P/B ratio of 3.34. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CRCL has a P/B of 9.35.

Based on these metrics and many more, PIPR holds a Value grade of B, while CRCL has a Value grade of F.

PIPR has seen stronger estimate revision activity and sports more attractive valuation metrics than CRCL, so it seems like value investors will conclude that PIPR is the superior option right now.

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