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EBAY or ZLNDY: Which Is the Better Value Stock Right Now?

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Investors interested in Internet - Commerce stocks are likely familiar with eBay (EBAY - Free Report) and ZALANDO SE ADRS (ZLNDY - Free Report) . 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

eBay has a Zacks Rank of #2 (Buy), while ZALANDO SE ADRS has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that EBAY likely has seen a stronger improvement to its earnings outlook than ZLNDY has recently. However, value investors will care about much more than just this.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

EBAY currently has a forward P/E ratio of 14.18, while ZLNDY has a forward P/E of 109.03. We also note that EBAY has a PEG ratio of 1.49. 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. ZLNDY currently has a PEG ratio of 3.89.

Another notable valuation metric for EBAY is its P/B ratio of 4.51. 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, ZLNDY has a P/B of 5.44.

These metrics, and several others, help EBAY earn a Value grade of B, while ZLNDY has been given a Value grade of D.

EBAY stands above ZLNDY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EBAY is the superior value option right now.


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