WU vs. V: Which Stock Is the Better Value Option?
VisaVisa(US:V) zacks.com·2024-05-22 16:46

Group 1 - The article compares Western Union (WU) and Visa (V) to determine which stock is more attractive to value investors, highlighting WU's stronger earnings outlook and Zacks Rank of 2 (Buy) compared to V's 3 (Hold) [1] - WU has a forward P/E ratio of 7.36, significantly lower than V's forward P/E of 27.77, indicating that WU may be undervalued at its current share price [2] - WU's PEG ratio is 1.88, while V's PEG ratio is 1.89, suggesting that both companies have similar expected earnings growth rates, but WU's lower P/E ratio may indicate better value [2] Group 2 - WU has a P/B ratio of 11.01, compared to V's P/B of 12.98, further supporting the argument that WU is a more attractive value investment [2] - WU's overall Value grade is A, while V's Value grade is C, indicating that WU is perceived as a superior value option based on various valuation metrics [3] - The improving earnings outlook for WU enhances its attractiveness in the context of the Zacks Rank model, reinforcing the conclusion that WU is the better value choice at this time [3]