Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Financial Services industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Financial Services Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Financial Services Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Financial Services industry for Thursday, June 05, 2025. Let’s take a closer look at their individual scores to see how they measure up against each other and the Financial Services industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Federal Agricultural Mortgage Corporation’s Value Grade

Value Grade:

Federal Agricultural Mortgage Corporation provides a secondary market for various loans made to borrowers in the United States. It operates through seven segments: Farm & Ranch, Corporate AgFinance, Power & Utilities, Broadband Infrastructure, Renewable Energy, Funding, and Investments. The company is involved in a line of agricultural finance business, including purchasing and retaining eligible loans and securities; guaranteeing the payment of principal and interest on securities that represent interests in, or obligations secured by pools of eligible loans; servicing eligible loans; and issuing long-term standby purchase commitments for designated eligible loans. It also engages in the purchasing and guaranteeing of securities issued by lenders and other financial institutions that are secured by pools of eligible loans, loans for electric or telecommunications facilities by lenders organized as cooperatives to borrowers; and loans to rural electric generation and transmission cooperatives and distribution cooperatives, as well as AgVantage securities secured by those types of loans. Federal Agricultural Mortgage Corporation was incorporated in 1987 and is headquartered in Washington, the District of Columbia.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Federal Agricultural Mortgage Corporation has a Value Score of 63, which is considered to be undervalued.

When you look at Federal Agricultural Mortgage Corporation’s price-to-sales ratio at 5.72 compared to the industry median at 2.14, this company has a higher price relative to revenue compared to its peers. This could make Federal Agricultural Mortgage Corporation’s stock less attractive for value investors.

Federal Agricultural Mortgage Corporation’s price-earnings ratio is 11.60 compared to the industry median at 15.80. This means it has a lower share price relative to earnings compared to its peers. This could make Federal Agricultural Mortgage Corporation more attractive for value investors.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Federal Agricultural Mortgage Corporation’s shareholder yield is higher than its industry median ratio of 1.15%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Federal Agricultural Mortgage Corporation’s price-to-book ratio is higher than its industry median ratio of 1.28. This could make Federal Agricultural Mortgage Corporation less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Federal Agricultural Mortgage Corporation’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Federal Agricultural Mortgage Corporation’s price-to-free-cash-flow ratio is lower than its industry median ratio of 13.50. This could make Federal Agricultural Mortgage Corporation more attractive because the lower P/FCF ratio indicates that Federal Agricultural Mortgage Corporation is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Cannae Holdings, Inc.’s Value Grade

Value Grade:

Cannae Holdings, Inc. is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae Holdings, Inc. was founded in 2014 and is based in Las Vegas, Nevada.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Cannae Holdings, Inc. has a Value Score of 86, which is considered to be undervalued.

Cannae Holdings, Inc.’s price-to-book ratio is higher than its peers. This could make Cannae Holdings, Inc. less attractive for value investors when compared to the industry median at 1.28.

You can read more about Cannae Holdings, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Euronet Worldwide, Inc.’s Value Grade

Value Grade:

Euronet Worldwide, Inc. provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, and individual consumers worldwide. It operates through three segments: Electronic Funds Transfer (EFT), epay, and Money Transfer. The EFT segment provides automated teller machine (ATM) cash withdrawal and deposit services, ATM network participation, outsourced ATM and point-of-sale (POS) management solutions, credit and debit and prepaid card outsourcing, card issuing, and merchant acquiring services. It also offers ATM and POS dynamic currency conversion, domestic and international surcharge, foreign currency dispensing, advertising, digital content sales at ATMs, customer relationship management, prepaid mobile top-up, bill payment, money transfer, fraud management, foreign remittance payout, cardless payout, banknote recycling solutions, and tax-refund services; and integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems. The epay segment distributes and processes prepaid mobile airtime and other electronic content and payment processing services for various prepaid products, cards, and services. The Money Transfer segment offers consumer-to-consumer money transfer services through a network of locations and its website riamoneytransfer.com; account-to-account money transfer; and money transfer services through its website xe.com, Xe app, and customer service representatives. It also provides foreign currency exchange information on its currency data websites xe.com and x-rates.com; cash management solutions and foreign currency risk management services to small-and-medium-sized businesses; and payment processing services to third-party partners. The company was formerly known as Euronet Services, Inc. and changed its name to Euronet Worldwide, Inc. in August 2001. Euronet Worldwide, Inc. was founded in 1994 and is headquartered in Leawood, Kansas.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Euronet Worldwide, Inc. has a Value Score of 72, which is considered to be undervalued.

Euronet Worldwide, Inc.’s price-earnings ratio is 16.1 compared to the industry median at 15.8. This means that it has a higher price relative to its earnings compared to its peers. This makes Euronet Worldwide, Inc. less attractive for value investors.

Euronet Worldwide, Inc.’s price-to-book ratio is lower than its peers. This could make Euronet Worldwide, Inc. more attractive for value investors when compared to the industry median at 1.28.

You can read more about Euronet Worldwide, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Global Payments Inc.’s Value Grade

Value Grade:

Global Payments Inc. provides payment technology and software solutions for card, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. It operates through two segments, Merchant Solutions and Issuer Solutions. The Merchant Solutions segment offers authorization, settlement and funding, customer support, chargeback resolution, reconciliation and dispute management, terminal rental, sales and deployment, payment security, and consolidated billing and reporting services. This segment also provides an array of enterprise software solutions that streamline business operations of its customers in various vertical markets; and value-added solutions and services, such as point-of-sale software, analytics and customer engagement, payroll and reporting, and human capital management. The Issuer Solutions segment offers solutions that enable financial institutions and retailers to manage their card portfolios through a platform; and commercial payments, accounts payables, and electronic payment alternatives solutions for businesses and governments. It markets its products and services through direct sales force, trade associations, agent and enterprise software providers, referral arrangements with value-added resellers, and independent sales organizations. The company was founded in 1967 and is headquartered in Atlanta, Georgia.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Global Payments Inc. has a Value Score of 86, which is considered to be undervalued.

Global Payments Inc.’s price-earnings ratio is 12.4 compared to the industry median at 15.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Global Payments Inc. more attractive for value investors.

Global Payments Inc.’s price-to-book ratio is higher than its peers. This could make Global Payments Inc. less attractive for value investors when compared to the industry median at 1.28.

You can read more about Global Payments Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Merchants Bancorp’s Value Grade

Value Grade:

Merchants Bancorp operates as the diversified bank holding company in the United States. It operates through three segments: Multi-family Mortgage Banking, Mortgage Warehousing, and Banking. The Multi-family Mortgage Banking segment engages in the mortgage banking, which originates, and services government sponsored mortgages, including bridge financing products to refinance, acquire, or reposition multi-family housing projects, and construction lending for multi-family rental housing and healthcare facilities financing. This segment also offers customized loan products for need-based skilled nursing facilities, such as independent living, assisted living, and memory care; and tax credit equity syndicator service. The Mortgage Warehousing segment funds agency eligible residential loans, as well as commercial loans to non-depository financial institutions. The Banking segment offers a range of financial products and services to consumers and businesses, which includes retail banking, commercial lending, agricultural lending, retail and correspondent residential mortgage banking, and small business administration lending. Merchants Bancorp was founded in 1990 and is headquartered in Carmel, Indiana.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Merchants Bancorp has a Value Score of 69, which is considered to be undervalued.

Merchants Bancorp’s price-earnings ratio is 5.8 compared to the industry median at 15.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Merchants Bancorp more attractive for value investors.

Merchants Bancorp’s price-to-book ratio is higher than its peers. This could make Merchants Bancorp less attractive for value investors when compared to the industry median at 1.28.

You can read more about Merchants Bancorp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

MGIC Investment Corporation’s Value Grade

Value Grade:

MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services in the United States, the District of Columbia, Puerto Rico, and Guam. The company offers primary insurance that provides mortgage default protection on individual loans, as well as covers unpaid loan principal, delinquent interest, and various expenses associated with the default and subsequent foreclosure on the mortgage or sale of the underlying property. It also provides pool insurance for secondary market mortgage transactions; and contract underwriting services, as well as reinsurance services. The company serves originators of residential mortgage loans, including savings institutions, commercial banks, mortgage brokers, credit unions, mortgage bankers, and other lenders. MGIC Investment Corporation was founded in 1957 and is headquartered in Milwaukee, Wisconsin.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

MGIC Investment Corporation has a Value Score of 82, which is considered to be undervalued.

MGIC Investment Corporation’s price-earnings ratio is 8.7 compared to the industry median at 15.8. This means that it has a lower price relative to its earnings compared to its peers. This makes MGIC Investment Corporation more attractive for value investors.

MGIC Investment Corporation’s price-to-book ratio is higher than its peers. This could make MGIC Investment Corporation less attractive for value investors when compared to the industry median at 1.28.

You can read more about MGIC Investment Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Paysafe Limited’s Value Grade

Value Grade:

Paysafe Limited provides end-to-end payment solutions in the United States, Germany, the United Kingdom, and internationally. The company operates through two segments, Merchant Solutions and Digital Wallets. Its payments platform offers a range of payment solutions comprising credit and debit card processing, digital wallet, eCash, and real-time banking solutions for entertainment verticals, such as iGaming, including online betting related to sports, e-sports, fantasy sports, poker, and other casino games, as well as travel, streaming/video gaming, retail/hospitality, and digital assets. The Merchant Solutions segment offers PCI-compliant payment acceptance and transaction processing solutions for merchants and integrated service providers, including merchant acquiring, transaction processing, gateway solutions, fraud and risk management tools, data and analytics, point of sale systems, and merchant financing solutions, as well as comprehensive support services under the Paysafe and Petroleum Card Services brands. The Digital Wallets segment offers digital wallet solutions under the Skrill, NETELLER, paysafecard, and Paysafecash brands; and pay-by-bank solutions under the Rapid Transfer brand. It provides eCash solutions under the paysafecard and Paysafecash brands; paysafecard prepaid Mastercard that can be linked to a digital paysafecard account and used to make purchases; Safetypay, a platform that enables eCommerce transactions; and PagoEfectivo, an alternative payment platform. The company is based in London, the United Kingdom.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Paysafe Limited has a Value Score of 94, which is considered to be undervalued.

Paysafe Limited’s price-to-book ratio is higher than its peers. This could make Paysafe Limited less attractive for value investors when compared to the industry median at 1.28.

You can read more about Paysafe Limited’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Financial Services Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Financial Services stocks as well as other industrys.

Choosing Which of the 7 Best Financial Services Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Federal Agricultural Mortgage Corporation stock has a Value Grade of B.
• Cannae Holdings, Inc. stock has a Value Grade of A.
• Euronet Worldwide, Inc. stock has a Value Grade of B.
• Global Payments Inc. stock has a Value Grade of A.
• Merchants Bancorp stock has a Value Grade of B.
• MGIC Investment Corporation stock has a Value Grade of A.
• Paysafe Limited stock has a Value Grade of A.

Now that you have a bit more background about each of the 7 undervalued stocks in the Financial Services industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Financial Services Stocks

Want to learn more about Financial Services stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 3 Undervalued Financial Services Stocks for Thursday, June 05
• Which Is a Better Investment, Federal Agricultural Mortgage Corporation or Sezzle Inc. Stock?
• 3 Undervalued Financial Services Stocks for Wednesday, June 04
• Why Better Home & Finance Holding Company’s (BETR) Stock Is Down 6.81%

AAII Disclaimer

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