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

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Investors interested in stocks from the Financial Transaction Services sector have probably already heard of Paysafe Limited (PSFE - Free Report) and Flyware (FLYW - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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.

Currently, Paysafe Limited has a Zacks Rank of #2 (Buy), while Flyware 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 FLYW has recently. But this is only part of the picture 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

PSFE currently has a forward P/E ratio of 7.66, while FLYW has a forward P/E of 1,737. We also note that PSFE has a PEG ratio of 0.42. 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. FLYW currently has a PEG ratio of 31.38.

Another notable valuation metric for PSFE is its P/B ratio of 1.31. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, FLYW has a P/B of 2.71.

These metrics, and several others, help PSFE earn a Value grade of A, while FLYW has been given a Value grade of D.

PSFE stands above FLYW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PSFE is the superior value option right now.


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