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STNE vs. FFIV: Which Stock Is the Better Value Option?
ZACKSยท2025-06-18 16:41

Core Viewpoint - Investors in the Internet - Software sector may find StoneCo Ltd. (STNE) more attractive than F5 Networks (FFIV) for value investing opportunities [1] Valuation Metrics - StoneCo Ltd. has a Zacks Rank of 1 (Strong Buy), indicating a more favorable earnings estimate revision trend compared to F5 Networks, which has a Zacks Rank of 3 (Hold) [3] - STNE's forward P/E ratio is 10.60, significantly lower than FFIV's forward P/E of 19.83, suggesting STNE may be undervalued [5] - The PEG ratio for STNE is 0.40, while FFIV's PEG ratio is 2.88, indicating STNE's expected earnings growth is more favorable relative to its price [5] - STNE has a P/B ratio of 2.19 compared to FFIV's P/B of 5, further supporting STNE's valuation attractiveness [6] Value Grades - STNE has earned a Value grade of B, while FFIV has a Value grade of D, highlighting STNE's superior valuation metrics [6]