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BIDU vs. GOOG: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Internet - Services sector have probably already heard of Baidu Inc. (BIDU - Free Report) and Alphabet Inc. (GOOG - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Baidu Inc. is sporting a Zacks Rank of #1 (Strong Buy), while Alphabet Inc. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BIDU has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
BIDU currently has a forward P/E ratio of 10.95, while GOOG has a forward P/E of 18.66. We also note that BIDU has a PEG ratio of 0.52. 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. GOOG currently has a PEG ratio of 1.65.
Another notable valuation metric for BIDU is its P/B ratio of 1.04. 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, GOOG has a P/B of 4.96.
These metrics, and several others, help BIDU earn a Value grade of B, while GOOG has been given a Value grade of C.
BIDU sticks out from GOOG in both our Zacks Rank and Style Scores models, so value investors will likely feel that BIDU is the better option right now.
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BIDU vs. GOOG: Which Stock Is the Better Value Option?
Investors interested in stocks from the Internet - Services sector have probably already heard of Baidu Inc. (BIDU - Free Report) and Alphabet Inc. (GOOG - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Baidu Inc. is sporting a Zacks Rank of #1 (Strong Buy), while Alphabet Inc. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BIDU has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
BIDU currently has a forward P/E ratio of 10.95, while GOOG has a forward P/E of 18.66. We also note that BIDU has a PEG ratio of 0.52. 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. GOOG currently has a PEG ratio of 1.65.
Another notable valuation metric for BIDU is its P/B ratio of 1.04. 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, GOOG has a P/B of 4.96.
These metrics, and several others, help BIDU earn a Value grade of B, while GOOG has been given a Value grade of C.
BIDU sticks out from GOOG in both our Zacks Rank and Style Scores models, so value investors will likely feel that BIDU is the better option right now.