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PYPL vs. FFIV: Which Stock Is the Better Value Option? September 18, 2024
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Investors looking for stocks in the Internet - Software sector might want to consider either Paypal (PYPL - Free Report) or F5 Networks (FFIV - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Paypal has a Zacks Rank of #1 (Strong Buy), while F5 Networks has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PYPL is likely seeing its earnings outlook improve to a greater extent. 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.
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.
PYPL currently has a forward P/E ratio of 16.25, while FFIV has a forward P/E of 16.31. We also note that PYPL has a PEG ratio of 1.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FFIV currently has a PEG ratio of 2.08.
Another notable valuation metric for PYPL is its P/B ratio of 3.56. 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, FFIV has a P/B of 4.16.
Based on these metrics and many more, PYPL holds a Value grade of B, while FFIV has a Value grade of C.
PYPL stands above FFIV thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PYPL is the superior value option right now.
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Investors looking for stocks in the Internet - Software sector might want to consider either Paypal (PYPL - Free Report) or F5 Networks (FFIV - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Paypal has a Zacks Rank of #1 (Strong Buy), while F5 Networks has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PYPL is likely seeing its earnings outlook improve to a greater extent. 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.
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.
PYPL currently has a forward P/E ratio of 16.25, while FFIV has a forward P/E of 16.31. We also note that PYPL has a PEG ratio of 1.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FFIV currently has a PEG ratio of 2.08.
Another notable valuation metric for PYPL is its P/B ratio of 3.56. 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, FFIV has a P/B of 4.16.
Based on these metrics and many more, PYPL holds a Value grade of B, while FFIV has a Value grade of C.
PYPL stands above FFIV thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PYPL is the superior value option right now.