GPN vs. MA: Which Stock Is the Better Value Option?

Core Viewpoint - Investors in the Financial Transaction Services sector should consider Global Payments (GPN) and MasterCard (MA) for potential undervalued stock opportunities [1] Group 1: Company Performance - GPN has a Zacks Rank of 2 (Buy), indicating strong earnings estimate revision activity, while MA has a Zacks Rank of 3 (Hold) [3] - GPN's improving analyst outlook suggests it is a more favorable option for value investors compared to MA [4] Group 2: Valuation Metrics - GPN has a forward P/E ratio of 8.40, significantly lower than MA's forward P/E of 31.64, indicating GPN may be undervalued [6] - GPN's PEG ratio is 0.59, while MA's PEG ratio is 1.76, further suggesting GPN's better valuation in terms of expected earnings growth [6] - GPN's P/B ratio is 1.09, contrasting sharply with MA's P/B ratio of 57.39, reinforcing GPN's superior valuation metrics [7] Group 3: Value Grades - GPN has earned a Value grade of A, while MA has received a Value grade of D, highlighting GPN's stronger position in terms of value assessment [7]