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SYF or SOFI: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Financial - Miscellaneous Services sector have probably already heard of Synchrony (SYF - Free Report) and SoFi Technologies, Inc. (SOFI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Synchrony has a Zacks Rank of #2 (Buy), while SoFi 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 SYF has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
SYF currently has a forward P/E ratio of 8.55, while SOFI has a forward P/E of 62.38. We also note that SYF 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. SOFI currently has a PEG ratio of 2.33.
Another notable valuation metric for SYF is its P/B ratio of 1.66. 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, SOFI has a P/B of 2.87.
Based on these metrics and many more, SYF holds a Value grade of A, while SOFI has a Value grade of F.
SYF sticks out from SOFI in both our Zacks Rank and Style Scores models, so value investors will likely feel that SYF is the better option right now.
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SYF or SOFI: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Financial - Miscellaneous Services sector have probably already heard of Synchrony (SYF - Free Report) and SoFi Technologies, Inc. (SOFI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Synchrony has a Zacks Rank of #2 (Buy), while SoFi 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 SYF has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
SYF currently has a forward P/E ratio of 8.55, while SOFI has a forward P/E of 62.38. We also note that SYF 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. SOFI currently has a PEG ratio of 2.33.
Another notable valuation metric for SYF is its P/B ratio of 1.66. 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, SOFI has a P/B of 2.87.
Based on these metrics and many more, SYF holds a Value grade of A, while SOFI has a Value grade of F.
SYF sticks out from SOFI in both our Zacks Rank and Style Scores models, so value investors will likely feel that SYF is the better option right now.