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PAGS or FOUR: 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 Shift4 Payments (FOUR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, PagSeguro Digital Ltd. is sporting a Zacks Rank of #2 (Buy), while Shift4 Payments has a Zacks Rank of #4 (Sell). This means that PAGS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
PAGS currently has a forward P/E ratio of 6.60, while FOUR has a forward P/E of 14.79. We also note that PAGS has a PEG ratio of 0.58. 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. FOUR currently has a PEG ratio of 0.66.
Another notable valuation metric for PAGS is its P/B ratio of 1.1. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, FOUR has a P/B of 7.11.
These are just a few of the metrics contributing to PAGS's Value grade of A and FOUR's Value grade of C.
PAGS sticks out from FOUR in both our Zacks Rank and Style Scores models, so value investors will likely feel that PAGS is the better option right now.
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PAGS or FOUR: 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 Shift4 Payments (FOUR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, PagSeguro Digital Ltd. is sporting a Zacks Rank of #2 (Buy), while Shift4 Payments has a Zacks Rank of #4 (Sell). This means that PAGS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
PAGS currently has a forward P/E ratio of 6.60, while FOUR has a forward P/E of 14.79. We also note that PAGS has a PEG ratio of 0.58. 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. FOUR currently has a PEG ratio of 0.66.
Another notable valuation metric for PAGS is its P/B ratio of 1.1. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, FOUR has a P/B of 7.11.
These are just a few of the metrics contributing to PAGS's Value grade of A and FOUR's Value grade of C.
PAGS sticks out from FOUR in both our Zacks Rank and Style Scores models, so value investors will likely feel that PAGS is the better option right now.