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.
QFIN or CLMB: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in Technology Services stocks are likely familiar with Qifu Technology, Inc. (QFIN - Free Report) and Climb Global Solutions (CLMB - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Right now, both Qifu Technology, Inc. and Climb Global Solutions are sporting a Zacks Rank of # 1 (Strong Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle 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.
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 4.95, while CLMB has a forward P/E of 26.78. We also note that QFIN has a PEG ratio of 0.42. 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. CLMB currently has a PEG ratio of 2.43.
Another notable valuation metric for QFIN is its P/B ratio of 1.27. 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, CLMB has a P/B of 5.04.
Based on these metrics and many more, QFIN holds a Value grade of A, while CLMB has a Value grade of C.
Both QFIN and CLMB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that QFIN is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
QFIN or CLMB: Which Is the Better Value Stock Right Now?
Investors interested in Technology Services stocks are likely familiar with Qifu Technology, Inc. (QFIN - Free Report) and Climb Global Solutions (CLMB - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Right now, both Qifu Technology, Inc. and Climb Global Solutions are sporting a Zacks Rank of # 1 (Strong Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle 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.
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 4.95, while CLMB has a forward P/E of 26.78. We also note that QFIN has a PEG ratio of 0.42. 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. CLMB currently has a PEG ratio of 2.43.
Another notable valuation metric for QFIN is its P/B ratio of 1.27. 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, CLMB has a P/B of 5.04.
Based on these metrics and many more, QFIN holds a Value grade of A, while CLMB has a Value grade of C.
Both QFIN and CLMB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that QFIN is the superior value option right now.