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QFIN vs. RKT: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Technology Services sector have probably already heard of Qifu Technology, Inc. (QFIN - Free Report) and Rocket Companies (RKT - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Qifu Technology, Inc. has a Zacks Rank of #2 (Buy), while Rocket Companies has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that QFIN is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
QFIN currently has a forward P/E ratio of 3.31, while RKT has a forward P/E of 37.75. We also note that QFIN has a PEG ratio of 0.32. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RKT currently has a PEG ratio of 7.55.
Another notable valuation metric for QFIN is its P/B ratio of 0.77. 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, RKT has a P/B of 2.91.
These are just a few of the metrics contributing to QFIN's Value grade of A and RKT's Value grade of D.
QFIN stands above RKT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that QFIN is the superior value option right now.
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QFIN vs. RKT: Which Stock Is the Better Value Option?
Investors interested in stocks from the Technology Services sector have probably already heard of Qifu Technology, Inc. (QFIN - Free Report) and Rocket Companies (RKT - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Qifu Technology, Inc. has a Zacks Rank of #2 (Buy), while Rocket Companies has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that QFIN is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
QFIN currently has a forward P/E ratio of 3.31, while RKT has a forward P/E of 37.75. We also note that QFIN has a PEG ratio of 0.32. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RKT currently has a PEG ratio of 7.55.
Another notable valuation metric for QFIN is its P/B ratio of 0.77. 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, RKT has a P/B of 2.91.
These are just a few of the metrics contributing to QFIN's Value grade of A and RKT's Value grade of D.
QFIN stands above RKT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that QFIN is the superior value option right now.