PAGS vs. DLO: Which Stock Is the Better Value Option?

Core Viewpoint - The analysis compares PagSeguro Digital Ltd. (PAGS) and DLocal (DLO) to determine which stock is a better undervalued investment option for investors interested in Financial Transaction Services [1]. Valuation Metrics - Both PAGS and DLO currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3]. - PAGS has a forward P/E ratio of 6.43, significantly lower than DLO's forward P/E of 23.86, suggesting PAGS is more undervalued [5]. - The PEG ratio for PAGS is 0.47, while DLO's PEG ratio is 3.26, further indicating PAGS's superior valuation based on expected EPS growth [5]. - PAGS has a P/B ratio of 0.96, compared to DLO's P/B of 9.07, reinforcing the notion that PAGS is undervalued relative to its book value [6]. - Based on these valuation metrics, PAGS holds a Value grade of A, while DLO has a Value grade of C, suggesting PAGS is the superior value option at this time [6].