Yahoo Finance PAGS or EFX: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Financial Transaction Services sector have probably already heard of PagSeguro Digital Ltd. (PAGS) and Equifax (EFX). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 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.
PagSeguro Digital Ltd. and Equifax are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that PAGS'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 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 9.19, while EFX has a forward P/E of 30.08. We also note that PAGS has a PEG ratio of 0.63. 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. EFX currently has a PEG ratio of 1.91.
Another notable valuation metric for PAGS is its P/B ratio of 1.47. 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, EFX has a P/B of 6.06.
These metrics, and several others, help PAGS earn a Value grade of A, while EFX has been given a Value grade of C.
PAGS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that PAGS is likely the superior value option right now.
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PagSeguro Digital Ltd. (PAGS) : Free Stock Analysis Report
Equifax, Inc. (EFX) : Free Stock Analysis Report
