Yahoo Finance NVEI vs. FLYW: Which Stock Is the Better Value Option?
Investors with an interest in Financial Transaction Services stocks have likely encountered both Nuvei Corporation (NVEI) and Flyware (FLYW). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 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, Nuvei Corporation is sporting a Zacks Rank of #2 (Buy), while Flyware has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NVEI 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 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.
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.
NVEI currently has a forward P/E ratio of 15.58, while FLYW has a forward P/E of 600.30. We also note that NVEI has a PEG ratio of 0.93. 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. FLYW currently has a PEG ratio of 11.29.
Another notable valuation metric for NVEI is its P/B ratio of 2.21. 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, FLYW has a P/B of 3.12.
These are just a few of the metrics contributing to NVEI's Value grade of B and FLYW's Value grade of D.
NVEI has seen stronger estimate revision activity and sports more attractive valuation metrics than FLYW, so it seems like value investors will conclude that NVEI is the superior option right now.
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Nuvei Corporation (NVEI) : Free Stock Analysis Report
Flywire Corporation (FLYW) : Free Stock Analysis Report
