WB vs. YNDX: Which Stock Is the Better Value Option?

YNDX WB

Investors with an interest in Internet - Content stocks have likely encountered both Weibo Corporation (WB - Free Report) and Yandex (YNDX - 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, Weibo Corporation has a Zacks Rank of #2 (Buy), while Yandex has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that WB is likely seeing its earnings outlook improve to a greater extent. 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

WB currently has a forward P/E ratio of 15.63, while YNDX has a forward P/E of 200.24. We also note that WB has a PEG ratio of 3.20. 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. YNDX currently has a PEG ratio of 5.37.

Another notable valuation metric for WB is its P/B ratio of 3.44. 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, YNDX has a P/B of 7.84.

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

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

Zacks Naming Top 10 Stocks for 2024

Want to be tipped off early to our 10 top picks for the entirety of 2024?

History suggests their performance could be sensational.

From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.

Be First to New Top 10 Stocks >>