EVTC or EFX: Which Is the Better Value Stock Right Now?

Core Viewpoint - Investors in the Financial Transaction Services sector may consider Evertec (EVTC) or Equifax (EFX) as potential undervalued stocks [1] Group 1: Zacks Rank and Valuation Metrics - Evertec has a Zacks Rank of 1 (Strong Buy), indicating a more favorable earnings estimate revision activity compared to Equifax, which has a Zacks Rank of 3 (Hold) [3] - Value investors utilize various valuation metrics, including P/E ratio, P/S ratio, earnings yield, and cash flow per share to assess undervaluation [4] Group 2: Valuation Comparisons - Evertec's forward P/E ratio is 11, significantly lower than Equifax's forward P/E of 41.87, suggesting that Evertec may be undervalued [5] - Evertec has a PEG ratio of 1.38, while Equifax's PEG ratio is 2.05, indicating that Evertec's expected earnings growth is more favorable relative to its price [5] - Evertec's P/B ratio is 4.38 compared to Equifax's P/B of 8.05, further supporting the notion that Evertec is more attractively valued [6] - Based on these metrics, Evertec holds a Value grade of B, while Equifax has a Value grade of D, making Evertec the preferred choice for value investors [6]