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FISV vs. EFX: Which Stock Should Value Investors Buy Now?

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Investors interested in Financial Transaction Services stocks are likely familiar with 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, both Fiserv and Equifax are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.

FISV currently has a forward P/E ratio of 19.49, while EFX has a forward P/E of 34. We also note that FISV has a PEG ratio of 1.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EFX currently has a PEG ratio of 2.29.

Another notable valuation metric for FISV is its P/B ratio of 2.20. 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, EFX has a P/B of 8.82.

These are just a few of the metrics contributing to FISV's Value grade of B and EFX's Value grade of D.

Both FISV and EFX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FISV is the superior value option right now.


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Fiserv, Inc. (FISV) : Free Stock Analysis Report
 
Equifax, Inc. (EFX) : Free Stock Analysis Report
 
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