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GBOOY or RPRX: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Financial - Miscellaneous Services sector have probably already heard of Grupo Financiero Banorte SAB de CV (GBOOY - Free Report) and Royalty Pharma (RPRX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 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.
Grupo Financiero Banorte SAB de CV and Royalty Pharma are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that GBOOY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
GBOOY currently has a forward P/E ratio of 9.27, while RPRX has a forward P/E of 9.39. We also note that GBOOY has a PEG ratio of 0.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RPRX currently has a PEG ratio of 0.78.
Another notable valuation metric for GBOOY is its P/B ratio of 2.18. 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, RPRX has a P/B of 2.27.
Based on these metrics and many more, GBOOY holds a Value grade of B, while RPRX has a Value grade of C.
GBOOY 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 GBOOY is likely the superior value option right now.
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GBOOY or RPRX: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Financial - Miscellaneous Services sector have probably already heard of Grupo Financiero Banorte SAB de CV (GBOOY - Free Report) and Royalty Pharma (RPRX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 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.
Grupo Financiero Banorte SAB de CV and Royalty Pharma are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that GBOOY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
GBOOY currently has a forward P/E ratio of 9.27, while RPRX has a forward P/E of 9.39. We also note that GBOOY has a PEG ratio of 0.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RPRX currently has a PEG ratio of 0.78.
Another notable valuation metric for GBOOY is its P/B ratio of 2.18. 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, RPRX has a P/B of 2.27.
Based on these metrics and many more, GBOOY holds a Value grade of B, while RPRX has a Value grade of C.
GBOOY 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 GBOOY is likely the superior value option right now.