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EVTC vs. RBA: Which Stock Is the Better Value Option?

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Investors interested in Financial Transaction Services stocks are likely familiar with Evertec (EVTC - Free Report) and RB Global (RBA - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Evertec has a Zacks Rank of #2 (Buy), while RB Global has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that EVTC likely has seen a stronger improvement to its earnings outlook than RBA has recently. But this is only part of the picture 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.

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.

EVTC currently has a forward P/E ratio of 7.56, while RBA has a forward P/E of 24.04. We also note that EVTC has a PEG ratio of 0.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RBA currently has a PEG ratio of 1.48.

Another notable valuation metric for EVTC is its P/B ratio of 3.02. 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, RBA has a P/B of 3.56.

These metrics, and several others, help EVTC earn a Value grade of A, while RBA has been given a Value grade of C.

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

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