Yahoo Finance FISV vs. EFX: Which Stock Is the Better Value Option?
Investors with an interest in Financial Transaction Services stocks have likely encountered both Fiserv (FISV) 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.
Fiserv has a Zacks Rank of #2 (Buy), while Equifax has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FISV has an improving earnings outlook. But this is only part of the picture 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 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.
FISV currently has a forward P/E ratio of 16.01, while EFX has a forward P/E of 27.50. We also note that FISV has a PEG ratio of 1.29. 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 1.87.
Another notable valuation metric for FISV is its P/B ratio of 2.36. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, EFX has a P/B of 5.93.
Based on these metrics and many more, FISV holds a Value grade of B, while EFX has a Value grade of C.
FISV 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 FISV is likely the superior value option right now.
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Fiserv, Inc. (FISV) : Free Stock Analysis Report
Equifax, Inc. (EFX) : Free Stock Analysis Report
