Yahoo Finance PSFE or FOUR: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Financial Transaction Services sector might want to consider either Paysafe Limited (PSFE) or Shift4 Payments (FOUR). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Paysafe Limited has a Zacks Rank of #2 (Buy), while Shift4 Payments has a Zacks Rank of #3 (Hold) right now. This means that PSFE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
PSFE currently has a forward P/E ratio of 7.10, while FOUR has a forward P/E of 19.16. We also note that PSFE has a PEG ratio of 0.38. 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. FOUR currently has a PEG ratio of 0.74.
Another notable valuation metric for PSFE is its P/B ratio of 1.22. 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, FOUR has a P/B of 7.07.
These metrics, and several others, help PSFE earn a Value grade of A, while FOUR has been given a Value grade of C.
PSFE has seen stronger estimate revision activity and sports more attractive valuation metrics than FOUR, so it seems like value investors will conclude that PSFE is the superior option right now.
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Paysafe Limited (PSFE): Free Stock Analysis Report
Shift4 Payments, Inc. (FOUR): Free Stock Analysis Report
