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PAGS or RBA: Which Is the Better Value Stock Right Now?
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Investors interested in Financial Transaction Services stocks are likely familiar with PagSeguro Digital Ltd. (PAGS - Free Report) and RB Global (RBA - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
PagSeguro Digital Ltd. and RB Global are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that PAGS 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 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.
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.
PAGS currently has a forward P/E ratio of 6.27, while RBA has a forward P/E of 25.10. We also note that PAGS has a PEG ratio of 0.46. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RBA currently has a PEG ratio of 3.
Another notable valuation metric for PAGS is its P/B ratio of 0.95. 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, RBA has a P/B of 3.39.
These metrics, and several others, help PAGS earn a Value grade of A, while RBA has been given a Value grade of C.
PAGS has seen stronger estimate revision activity and sports more attractive valuation metrics than RBA, so it seems like value investors will conclude that PAGS is the superior option right now.
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PAGS or RBA: Which Is the Better Value Stock Right Now?
Investors interested in Financial Transaction Services stocks are likely familiar with PagSeguro Digital Ltd. (PAGS - Free Report) and RB Global (RBA - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
PagSeguro Digital Ltd. and RB Global are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that PAGS 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 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.
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.
PAGS currently has a forward P/E ratio of 6.27, while RBA has a forward P/E of 25.10. We also note that PAGS has a PEG ratio of 0.46. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RBA currently has a PEG ratio of 3.
Another notable valuation metric for PAGS is its P/B ratio of 0.95. 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, RBA has a P/B of 3.39.
These metrics, and several others, help PAGS earn a Value grade of A, while RBA has been given a Value grade of C.
PAGS has seen stronger estimate revision activity and sports more attractive valuation metrics than RBA, so it seems like value investors will conclude that PAGS is the superior option right now.