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FLYW vs. PLTR: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Internet - Software sector have probably already heard of Flywire (FLYW - Free Report) and Palantir Technologies Inc. (PLTR - 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.

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.

Flywire has a Zacks Rank of #2 (Buy), while Palantir Technologies Inc. has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FLYW has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.

FLYW currently has a forward P/E ratio of 39.13, while PLTR has a forward P/E of 106.86. We also note that FLYW has a PEG ratio of 1.14. 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. PLTR currently has a PEG ratio of 2.16.

Another notable valuation metric for FLYW is its P/B ratio of 1.98. 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, PLTR has a P/B of 45.69.

These metrics, and several others, help FLYW earn a Value grade of B, while PLTR has been given a Value grade of F.

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

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