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CNK vs. CWH: Which Stock Is the Better Value Option?

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Investors with an interest in Leisure and Recreation Services stocks have likely encountered both Cinemark Holdings (CNK - Free Report) and Camping World (CWH - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Cinemark Holdings and Camping World are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CNK has an improving earnings outlook. However, value investors will care about much more than just this.

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 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.

CNK currently has a forward P/E ratio of 16.41, while CWH has a forward P/E of 94.33. We also note that CNK has a PEG ratio of 1.09. 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. CWH currently has a PEG ratio of 8.34.

Another notable valuation metric for CNK is its P/B ratio of 2.94. 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, CWH has a P/B of 29.16.

These metrics, and several others, help CNK earn a Value grade of A, while CWH has been given a Value grade of C.

CNK sticks out from CWH in both our Zacks Rank and Style Scores models, so value investors will likely feel that CNK is the better option right now.


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