PSFE vs. EFX: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Financial Transaction Services sector have probably already heard of Paysafe Limited (PSFE) and Equifax (EFX). 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Paysafe Limited is sporting a Zacks Rank of #2 (Buy), while Equifax has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that PSFE likely has seen a stronger improvement to its earnings outlook than EFX has recently. 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.
PSFE currently has a forward P/E ratio of 4.09, while EFX has a forward P/E of 24.56. We also note that PSFE has a PEG ratio of 0.39. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EFX currently has a PEG ratio of 2.37.
Another notable valuation metric for PSFE is its P/B ratio of 0.67. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, EFX has a P/B of 4.75.
Based on these metrics and many more, PSFE holds a Value grade of B, while EFX has a Value grade of F.
PSFE sticks out from EFX in both our Zacks Rank and Style Scores models, so value investors will likely feel that PSFE is the better option right now.
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Paysafe Limited (PSFE) : Free Stock Analysis Report
Equifax, Inc. (EFX) : Free Stock Analysis Report
