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PSFE vs. ADYEY: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Financial Transaction Services sector might want to consider either Paysafe Limited (PSFE - Free Report) or Adyen N.V. Unsponsored ADR (ADYEY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Paysafe Limited has a Zacks Rank of #1 (Strong Buy), while Adyen N.V. Unsponsored ADR has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that PSFE likely has seen a stronger improvement to its earnings outlook than ADYEY 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 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 20.94, while ADYEY has a forward P/E of 55.18. We also note that PSFE has a PEG ratio of 1.72. 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. ADYEY currently has a PEG ratio of 2.12.

Another notable valuation metric for PSFE is its P/B ratio of 0.95. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ADYEY has a P/B of 27.19.

Based on these metrics and many more, PSFE holds a Value grade of B, while ADYEY has a Value grade of F.

PSFE sticks out from ADYEY 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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Adyen N.V. Unsponsored ADR (ADYEY) - free report >>

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