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WU or V: Which Is the Better Value Stock Right Now?
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Investors interested in Financial Transaction Services stocks are likely familiar with Western Union (WU - Free Report) and Visa (V - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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, Western Union has a Zacks Rank of #2 (Buy), while Visa has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that WU likely has seen a stronger improvement to its earnings outlook than V has recently. But this is only part of the picture for value investors.
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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
WU currently has a forward P/E ratio of 7.34, while V has a forward P/E of 27.88. We also note that WU has a PEG ratio of 1.88. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. V currently has a PEG ratio of 1.90.
Another notable valuation metric for WU is its P/B ratio of 10.99. 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, V has a P/B of 13.03.
Based on these metrics and many more, WU holds a Value grade of A, while V has a Value grade of C.
WU stands above V thanks to its solid earnings outlook, and based on these valuation figures, we also feel that WU is the superior value option right now.
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WU or V: Which Is the Better Value Stock Right Now?
Investors interested in Financial Transaction Services stocks are likely familiar with Western Union (WU - Free Report) and Visa (V - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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, Western Union has a Zacks Rank of #2 (Buy), while Visa has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that WU likely has seen a stronger improvement to its earnings outlook than V has recently. But this is only part of the picture for value investors.
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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
WU currently has a forward P/E ratio of 7.34, while V has a forward P/E of 27.88. We also note that WU has a PEG ratio of 1.88. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. V currently has a PEG ratio of 1.90.
Another notable valuation metric for WU is its P/B ratio of 10.99. 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, V has a P/B of 13.03.
Based on these metrics and many more, WU holds a Value grade of A, while V has a Value grade of C.
WU stands above V thanks to its solid earnings outlook, and based on these valuation figures, we also feel that WU is the superior value option right now.