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YAHOY vs. SHOP: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Internet - Services sector might want to consider either YAHOO JAPAN CP (YAHOY - Free Report) or Shopify (SHOP - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
YAHOO JAPAN CP and Shopify are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that YAHOY likely has seen a stronger improvement to its earnings outlook than SHOP has recently. However, value investors will care about much more than just this.
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.
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.
YAHOY currently has a forward P/E ratio of 20.79, while SHOP has a forward P/E of 703.29. We also note that YAHOY has a PEG ratio of 1.39. 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. SHOP currently has a PEG ratio of 28.13.
Another notable valuation metric for YAHOY is its P/B ratio of 2.20. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SHOP has a P/B of 8.73.
These metrics, and several others, help YAHOY earn a Value grade of B, while SHOP has been given a Value grade of F.
YAHOY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that YAHOY is likely the superior value option right now.
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YAHOY vs. SHOP: Which Stock Is the Better Value Option?
Investors looking for stocks in the Internet - Services sector might want to consider either YAHOO JAPAN CP (YAHOY - Free Report) or Shopify (SHOP - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
YAHOO JAPAN CP and Shopify are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that YAHOY likely has seen a stronger improvement to its earnings outlook than SHOP has recently. However, value investors will care about much more than just this.
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.
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.
YAHOY currently has a forward P/E ratio of 20.79, while SHOP has a forward P/E of 703.29. We also note that YAHOY has a PEG ratio of 1.39. 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. SHOP currently has a PEG ratio of 28.13.
Another notable valuation metric for YAHOY is its P/B ratio of 2.20. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SHOP has a P/B of 8.73.
These metrics, and several others, help YAHOY earn a Value grade of B, while SHOP has been given a Value grade of F.
YAHOY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that YAHOY is likely the superior value option right now.