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BYD or MYPS: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Gaming sector have probably already heard of Boyd Gaming (BYD - Free Report) and PLAYSTUDIOS, Inc. (MYPS - Free Report) . 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Boyd Gaming has a Zacks Rank of #1 (Strong Buy), while PLAYSTUDIOS, Inc. has a Zacks Rank of #4 (Sell). This means that BYD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
BYD currently has a forward P/E ratio of 13.06, while MYPS has a forward P/E of 54.29. We also note that BYD has a PEG ratio of 0.32. 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. MYPS currently has a PEG ratio of 1.81.
Another notable valuation metric for BYD is its P/B ratio of 4.88. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, MYPS has a P/B of 30.67.
Based on these metrics and many more, BYD holds a Value grade of B, while MYPS has a Value grade of C.
BYD has seen stronger estimate revision activity and sports more attractive valuation metrics than MYPS, so it seems like value investors will conclude that BYD is the superior option right now.
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BYD or MYPS: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Gaming sector have probably already heard of Boyd Gaming (BYD - Free Report) and PLAYSTUDIOS, Inc. (MYPS - Free Report) . 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Boyd Gaming has a Zacks Rank of #1 (Strong Buy), while PLAYSTUDIOS, Inc. has a Zacks Rank of #4 (Sell). This means that BYD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
BYD currently has a forward P/E ratio of 13.06, while MYPS has a forward P/E of 54.29. We also note that BYD has a PEG ratio of 0.32. 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. MYPS currently has a PEG ratio of 1.81.
Another notable valuation metric for BYD is its P/B ratio of 4.88. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, MYPS has a P/B of 30.67.
Based on these metrics and many more, BYD holds a Value grade of B, while MYPS has a Value grade of C.
BYD has seen stronger estimate revision activity and sports more attractive valuation metrics than MYPS, so it seems like value investors will conclude that BYD is the superior option right now.