Yahoo Finance EXPE vs. ZLNDY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Internet - Commerce sector might want to consider either Expedia (EXPE) or Zalando (ZLNDY). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Expedia has a Zacks Rank of #2 (Buy), while Zalando has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EXPE is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
EXPE currently has a forward P/E ratio of 9.95, while ZLNDY has a forward P/E of 73.25. We also note that EXPE has a PEG ratio of 0.71. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ZLNDY currently has a PEG ratio of 7.78.
Another notable valuation metric for EXPE is its P/B ratio of 3.69. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ZLNDY has a P/B of 4.79.
Based on these metrics and many more, EXPE holds a Value grade of A, while ZLNDY has a Value grade of C.
EXPE sticks out from ZLNDY in both our Zacks Rank and Style Scores models, so value investors will likely feel that EXPE is the better option right now.
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Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
Zalando (ZLNDY) : Free Stock Analysis Report
