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EXPE vs. BKNG: Which Stock Is the Better Value Option?
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Investors with an interest in Internet - Commerce stocks have likely encountered both Expedia (EXPE - Free Report) and Booking Holdings (BKNG - 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Expedia is sporting a Zacks Rank of #2 (Buy), while Booking Holdings has a Zacks Rank of #4 (Sell). This means that EXPE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
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.
EXPE currently has a forward P/E ratio of 14.14, while BKNG has a forward P/E of 20.22. We also note that EXPE has a PEG ratio of 1.01. 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. BKNG currently has a PEG ratio of 1.23.
Another notable valuation metric for EXPE is its P/B ratio of 4.60. 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, BKNG has a P/B of 18.60.
These metrics, and several others, help EXPE earn a Value grade of A, while BKNG has been given a Value grade of D.
EXPE has seen stronger estimate revision activity and sports more attractive valuation metrics than BKNG, so it seems like value investors will conclude that EXPE is the superior option right now.
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EXPE vs. BKNG: Which Stock Is the Better Value Option?
Investors with an interest in Internet - Commerce stocks have likely encountered both Expedia (EXPE - Free Report) and Booking Holdings (BKNG - 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Expedia is sporting a Zacks Rank of #2 (Buy), while Booking Holdings has a Zacks Rank of #4 (Sell). This means that EXPE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
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.
EXPE currently has a forward P/E ratio of 14.14, while BKNG has a forward P/E of 20.22. We also note that EXPE has a PEG ratio of 1.01. 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. BKNG currently has a PEG ratio of 1.23.
Another notable valuation metric for EXPE is its P/B ratio of 4.60. 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, BKNG has a P/B of 18.60.
These metrics, and several others, help EXPE earn a Value grade of A, while BKNG has been given a Value grade of D.
EXPE has seen stronger estimate revision activity and sports more attractive valuation metrics than BKNG, so it seems like value investors will conclude that EXPE is the superior option right now.