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UBSFY vs. MGM: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Gaming sector have probably already heard of UbiSoft Entertainment Inc. (UBSFY - Free Report) and MGM Resorts (MGM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, UbiSoft Entertainment Inc. is sporting a Zacks Rank of #2 (Buy), while MGM Resorts has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that UBSFY likely has seen a stronger improvement to its earnings outlook than MGM has recently. But this is just one piece of the puzzle for value investors.
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 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.
UBSFY currently has a forward P/E ratio of 13.94, while MGM has a forward P/E of 138.67. We also note that UBSFY has a PEG ratio of 1.75. 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. MGM currently has a PEG ratio of 7.89.
Another notable valuation metric for UBSFY is its P/B ratio of 1.97. 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, MGM has a P/B of 2.25.
These metrics, and several others, help UBSFY earn a Value grade of A, while MGM has been given a Value grade of C.
UBSFY has seen stronger estimate revision activity and sports more attractive valuation metrics than MGM, so it seems like value investors will conclude that UBSFY is the superior option right now.
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UBSFY vs. MGM: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Gaming sector have probably already heard of UbiSoft Entertainment Inc. (UBSFY - Free Report) and MGM Resorts (MGM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, UbiSoft Entertainment Inc. is sporting a Zacks Rank of #2 (Buy), while MGM Resorts has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that UBSFY likely has seen a stronger improvement to its earnings outlook than MGM has recently. But this is just one piece of the puzzle for value investors.
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 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.
UBSFY currently has a forward P/E ratio of 13.94, while MGM has a forward P/E of 138.67. We also note that UBSFY has a PEG ratio of 1.75. 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. MGM currently has a PEG ratio of 7.89.
Another notable valuation metric for UBSFY is its P/B ratio of 1.97. 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, MGM has a P/B of 2.25.
These metrics, and several others, help UBSFY earn a Value grade of A, while MGM has been given a Value grade of C.
UBSFY has seen stronger estimate revision activity and sports more attractive valuation metrics than MGM, so it seems like value investors will conclude that UBSFY is the superior option right now.