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TME or SSTK: Which Is the Better Value Stock Right Now?

Investors with an interest in Internet - Content stocks have likely encountered both Tencent Music Entertainment Group Sponsored ADR (TME) and Shutterstock (SSTK). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Tencent Music Entertainment Group Sponsored ADR and Shutterstock are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TME is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

TME currently has a forward P/E ratio of 15.68, while SSTK has a forward P/E of 21.12. We also note that TME has a PEG ratio of 0.61. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SSTK currently has a PEG ratio of 6.68.

Another notable valuation metric for TME is its P/B ratio of 2.09. 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, SSTK has a P/B of 6.26.

These metrics, and several others, help TME earn a Value grade of B, while SSTK has been given a Value grade of C.

TME sticks out from SSTK in both our Zacks Rank and Style Scores models, so value investors will likely feel that TME is the better option right now.

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Tencent Music Entertainment Group Sponsored ADR (TME) : Free Stock Analysis Report

Shutterstock, Inc. (SSTK) : Free Stock Analysis Report

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