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Forget Bitcoin! I’d buy these undervalued FTSE 250 growth stocks today

One of the big problems with Bitcoin is that it is difficult to compute an underlying fundamental value for the cryptocurrency.

And with this being the case, I think investors are better off sticking with stocks instead of digital currencies.

One undervalued FTSE 250 growth stock that I think has the potential to generate much better returns than Bitcoin over the long term is gambling group GVC Holdings (LSE: GVC).

Growth champion

Through a combination of acquisitions and organic growth, GVC has grown from being one of London’s smallest public companies five years ago into one of its largest today.

City analysts believe the group has the potential to generate a net profit of £371m this year and £448m in 2020, compared to just £10m in 2013.

As the company’s earnings have exploded, shareholders have reaped the rewards. Shares in GVC have produced a total annual return of 18.7% for investors over the past decade, turning every £1,000 invested into £6,400.

Past performance should not be used as a guide to the future, but it does give us an indication of a company’s ambitions and capabilities. As noted above, City analysts believe GVC’s earnings will continue to grow at a high double-digit rate over the next two years, and I think there’s a good chance that the group’s growth will carry on at a rapid clip in the years after.

Shareholders who want to go along for the ride can buy the stock today for just 13.3 times forward earnings. There’s also a dividend yield of 4.2% on offer. I think that’s a steal for such a fast-growing business.

Unique offering

If gambling isn’t for you, then animal genetics company Genus (LSE: GNS) is another FTSE 250 growth stock that I currently have my eye on.

This company is a relatively unique business. It provides farmers with genetics that enable them to produce animal protein, in the form of meat and milk. Its porcine business has a network of over 600 breeding herds in approximately 40 countries, giving farmers around the world access to its animal protein genetics.

Genus’s earnings per share have hardly budged over the past six years, but City analysts believe this is about to change. They believe the company is on track to achieve earnings growth of 57% in its current financial year, and 12% the year after.

In a recent trading update, management confirmed that the company is on track to meet growth targets for the year. Sales are expanding so quickly that the enterprise is investing to increase its production capacity.

Based on these forecasts, shares in Genus are currently dealing at a forward P/E of 39, which looks expensive at first, but when you consider the company’s growth, coupled with its portfolio of unique products, I think this is a price worth paying.

Global demand for food is only going to increase going forward, and the need for products that can help farmers improve the yield on their property is only going to grow as well. That suggests to me that Genus’s growth is only just getting started.

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Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended GVC Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.