We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DLO vs. MA: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors looking for stocks in the Financial Transaction Services sector might want to consider either DLocal (DLO - Free Report) or MasterCard (MA - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
DLocal and MasterCard are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that DLO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
DLO currently has a forward P/E ratio of 21.19, while MA has a forward P/E of 30.63. We also note that DLO has a PEG ratio of 0.77. 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. MA currently has a PEG ratio of 1.75.
Another notable valuation metric for DLO is its P/B ratio of 8.90. 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, MA has a P/B of 66.05.
These metrics, and several others, help DLO earn a Value grade of B, while MA has been given a Value grade of C.
DLO has seen stronger estimate revision activity and sports more attractive valuation metrics than MA, so it seems like value investors will conclude that DLO is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
DLO vs. MA: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Financial Transaction Services sector might want to consider either DLocal (DLO - Free Report) or MasterCard (MA - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
DLocal and MasterCard are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that DLO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
DLO currently has a forward P/E ratio of 21.19, while MA has a forward P/E of 30.63. We also note that DLO has a PEG ratio of 0.77. 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. MA currently has a PEG ratio of 1.75.
Another notable valuation metric for DLO is its P/B ratio of 8.90. 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, MA has a P/B of 66.05.
These metrics, and several others, help DLO earn a Value grade of B, while MA has been given a Value grade of C.
DLO has seen stronger estimate revision activity and sports more attractive valuation metrics than MA, so it seems like value investors will conclude that DLO is the superior option right now.