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Tencent Music Entertainment Group Sponsored ADR (TME) - free report >>
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Tencent Music Entertainment Group Sponsored ADR (TME) - free report >>
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TME vs. ABNB: Which Stock Should Value Investors Buy Now?
Investors interested in Internet - Content stocks are likely familiar with Tencent Music Entertainment Group Sponsored ADR (TME - Free Report) and Airbnb, Inc. (ABNB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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, both Tencent Music Entertainment Group Sponsored ADR and Airbnb, Inc. are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
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.
TME currently has a forward P/E ratio of 19.09, while ABNB has a forward P/E of 36.67. We also note that TME has a PEG ratio of 0.75. 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. ABNB currently has a PEG ratio of 1.77.
Another notable valuation metric for TME is its P/B ratio of 2.05. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ABNB has a P/B of 10.98.
These metrics, and several others, help TME earn a Value grade of B, while ABNB has been given a Value grade of C.
Both TME and ABNB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TME is the superior value option right now.