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DTC or BKNG: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Internet - Commerce sector might want to consider either Solo Brands, Inc. (DTC - Free Report) or Booking Holdings (BKNG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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 #1 (Strong Buy), while Booking Holdings has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that DTC likely has seen a stronger improvement to its earnings outlook than BKNG has recently. But this is just one factor that value investors are interested in.
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.
DTC currently has a forward P/E ratio of 3.47, while BKNG has a forward P/E of 17.79. We also note that DTC has a PEG ratio of 0.21. 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. BKNG currently has a PEG ratio of 1.05.
Another notable valuation metric for DTC is its P/B ratio of 0.75. 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, BKNG has a P/B of 16.61.
These metrics, and several others, help DTC earn a Value grade of A, while BKNG has been given a Value grade of C.
DTC stands above BKNG 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 or BKNG: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Internet - Commerce sector might want to consider either Solo Brands, Inc. (DTC - Free Report) or Booking Holdings (BKNG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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 #1 (Strong Buy), while Booking Holdings has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that DTC likely has seen a stronger improvement to its earnings outlook than BKNG has recently. But this is just one factor that value investors are interested in.
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.
DTC currently has a forward P/E ratio of 3.47, while BKNG has a forward P/E of 17.79. We also note that DTC has a PEG ratio of 0.21. 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. BKNG currently has a PEG ratio of 1.05.
Another notable valuation metric for DTC is its P/B ratio of 0.75. 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, BKNG has a P/B of 16.61.
These metrics, and several others, help DTC earn a Value grade of A, while BKNG has been given a Value grade of C.
DTC stands above BKNG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DTC is the superior value option right now.