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JD vs. AMZN: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Internet - Commerce sector have probably already heard of JD.com, Inc. (JD - Free Report) and Amazon (AMZN - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, JD.com, Inc. has a Zacks Rank of #2 (Buy), while Amazon has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that JD has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
JD currently has a forward P/E ratio of 41.48, while AMZN has a forward P/E of 83.88. We also note that JD has a PEG ratio of 1.54. 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. AMZN currently has a PEG ratio of 3.40.
Another notable valuation metric for JD is its P/B ratio of 2.39. 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, AMZN has a P/B of 14.39.
These are just a few of the metrics contributing to JD's Value grade of B and AMZN's Value grade of F.
JD stands above AMZN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that JD is the superior value option right now.
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JD vs. AMZN: Which Stock Is the Better Value Option?
Investors interested in stocks from the Internet - Commerce sector have probably already heard of JD.com, Inc. (JD - Free Report) and Amazon (AMZN - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, JD.com, Inc. has a Zacks Rank of #2 (Buy), while Amazon has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that JD has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
JD currently has a forward P/E ratio of 41.48, while AMZN has a forward P/E of 83.88. We also note that JD has a PEG ratio of 1.54. 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. AMZN currently has a PEG ratio of 3.40.
Another notable valuation metric for JD is its P/B ratio of 2.39. 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, AMZN has a P/B of 14.39.
These are just a few of the metrics contributing to JD's Value grade of B and AMZN's Value grade of F.
JD stands above AMZN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that JD is the superior value option right now.