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DFS vs. FCFS: Which Stock Is the Better Value Option?
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Investors with an interest in Financial - Consumer Loans stocks have likely encountered both Discover (DFS - Free Report) and First Cash Financial Services (FCFS - 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.
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.
Discover and First Cash Financial Services are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that DFS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
DFS currently has a forward P/E ratio of 9.09, while FCFS has a forward P/E of 25.14. We also note that DFS has a PEG ratio of 0.73. 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. FCFS currently has a PEG ratio of 1.25.
Another notable valuation metric for DFS is its P/B ratio of 2.29. 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, FCFS has a P/B of 2.95.
Based on these metrics and many more, DFS holds a Value grade of A, while FCFS has a Value grade of C.
DFS stands above FCFS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DFS is the superior value option right now.
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DFS vs. FCFS: Which Stock Is the Better Value Option?
Investors with an interest in Financial - Consumer Loans stocks have likely encountered both Discover (DFS - Free Report) and First Cash Financial Services (FCFS - 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.
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.
Discover and First Cash Financial Services are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that DFS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
DFS currently has a forward P/E ratio of 9.09, while FCFS has a forward P/E of 25.14. We also note that DFS has a PEG ratio of 0.73. 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. FCFS currently has a PEG ratio of 1.25.
Another notable valuation metric for DFS is its P/B ratio of 2.29. 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, FCFS has a P/B of 2.95.
Based on these metrics and many more, DFS holds a Value grade of A, while FCFS has a Value grade of C.
DFS stands above FCFS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DFS is the superior value option right now.