STNE vs. INFA: Which Stock Should Value Investors Buy Now?

Core Insights - The article compares two Internet - Software stocks, StoneCo Ltd. (STNE) and Informatica Inc. (INFA), to determine which is more attractive to value investors [1]. Valuation Metrics - StoneCo Ltd. has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while Informatica Inc. has a Zacks Rank of 3 (Hold) [3]. - STNE has a forward P/E ratio of 10.88, significantly lower than INFA's forward P/E of 15.46, suggesting STNE may be undervalued [5]. - The PEG ratio for STNE is 0.41, compared to INFA's PEG ratio of 2.18, indicating STNE's expected earnings growth is more favorable [5]. - STNE's P/B ratio is 1.94, while INFA's P/B ratio is 2.83, further supporting STNE's valuation advantage [6]. - Based on these metrics, STNE holds a Value grade of B, whereas INFA has a Value grade of D, highlighting STNE's superior valuation profile [6]. Earnings Outlook - STNE is noted for its improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7].