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DTC vs. AMZN: Which Stock Is the Better Value Option?
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Investors with an interest in Internet - Commerce stocks have likely encountered both Solo Brands, Inc. (DTC - Free Report) and Amazon (AMZN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Solo Brands, Inc. has a Zacks Rank of #2 (Buy), while Amazon has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DTC has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
DTC currently has a forward P/E ratio of 3.12, while AMZN has a forward P/E of 200.98. We also note that DTC has a PEG ratio of 0.19. 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. AMZN currently has a PEG ratio of 7.53.
Another notable valuation metric for DTC is its P/B ratio of 0.68. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AMZN has a P/B of 8.07.
These are just a few of the metrics contributing to DTC's Value grade of A and AMZN's Value grade of F.
DTC stands above AMZN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DTC is the superior value option right now.
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DTC vs. AMZN: Which Stock Is the Better Value Option?
Investors with an interest in Internet - Commerce stocks have likely encountered both Solo Brands, Inc. (DTC - Free Report) and Amazon (AMZN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Solo Brands, Inc. has a Zacks Rank of #2 (Buy), while Amazon has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DTC has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
DTC currently has a forward P/E ratio of 3.12, while AMZN has a forward P/E of 200.98. We also note that DTC has a PEG ratio of 0.19. 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. AMZN currently has a PEG ratio of 7.53.
Another notable valuation metric for DTC is its P/B ratio of 0.68. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AMZN has a P/B of 8.07.
These are just a few of the metrics contributing to DTC's Value grade of A and AMZN's Value grade of F.
DTC stands above AMZN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DTC is the superior value option right now.