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WEX 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 Wex (WEX - Free Report) and MasterCard (MA - 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.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Wex and MasterCard are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that WEX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
WEX currently has a forward P/E ratio of 8.57, while MA has a forward P/E of 32.64. We also note that WEX has a PEG ratio of 0.62. 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. MA currently has a PEG ratio of 1.84.
Another notable valuation metric for WEX is its P/B ratio of 5.2. 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, MA has a P/B of 84.36.
These are just a few of the metrics contributing to WEX's Value grade of A and MA's Value grade of D.
WEX has seen stronger estimate revision activity and sports more attractive valuation metrics than MA, so it seems like value investors will conclude that WEX is the superior option right now.
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WEX or MA: Which Is the Better Value Stock Right Now?
Investors with an interest in Financial Transaction Services stocks have likely encountered both Wex (WEX - Free Report) and MasterCard (MA - 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.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Wex and MasterCard are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that WEX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
WEX currently has a forward P/E ratio of 8.57, while MA has a forward P/E of 32.64. We also note that WEX has a PEG ratio of 0.62. 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. MA currently has a PEG ratio of 1.84.
Another notable valuation metric for WEX is its P/B ratio of 5.2. 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, MA has a P/B of 84.36.
These are just a few of the metrics contributing to WEX's Value grade of A and MA's Value grade of D.
WEX has seen stronger estimate revision activity and sports more attractive valuation metrics than MA, so it seems like value investors will conclude that WEX is the superior option right now.