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EXPE or MONOY: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Internet - Commerce sector have probably already heard of Expedia (EXPE - Free Report) and MONOTARO (MONOY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Expedia has a Zacks Rank of #2 (Buy), while MONOTARO has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that EXPE likely has seen a stronger improvement to its earnings outlook than MONOY has recently. 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 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.

EXPE currently has a forward P/E ratio of 29.68, while MONOY has a forward P/E of 66.18. We also note that EXPE has a PEG ratio of 1.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MONOY currently has a PEG ratio of 3.08.

Another notable valuation metric for EXPE is its P/B ratio of 3.53. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MONOY has a P/B of 29.28.

Based on these metrics and many more, EXPE holds a Value grade of B, while MONOY has a Value grade of F.

EXPE sticks out from MONOY 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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