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

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Investors with an interest in Financial Transaction Services stocks have likely encountered both Paysafe Limited (PSFE - Free Report) and Nuvei Corporation (NVEI - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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.

Right now, Paysafe Limited is sporting a Zacks Rank of #2 (Buy), while Nuvei Corporation has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PSFE likely has seen a stronger improvement to its earnings outlook than NVEI has recently. But this is only part of the picture for value investors.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

PSFE currently has a forward P/E ratio of 7.51, while NVEI has a forward P/E of 15.84. We also note that PSFE has a PEG ratio of 0.40. 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. NVEI currently has a PEG ratio of 0.94.

Another notable valuation metric for PSFE is its P/B ratio of 1.29. 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, NVEI has a P/B of 2.17.

These are just a few of the metrics contributing to PSFE's Value grade of A and NVEI's Value grade of C.

PSFE sticks out from NVEI 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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