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EXPE vs. ZLNDY: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Internet - Commerce sector might want to consider either Expedia (EXPE - Free Report) or Zalando (ZLNDY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Expedia and Zalando 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. 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 10.89, while ZLNDY has a forward P/E of 59.34. We also note that EXPE has a PEG ratio of 0.78. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ZLNDY currently has a PEG ratio of 3.28.

Another notable valuation metric for EXPE is its P/B ratio of 4.15. 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, ZLNDY has a P/B of 4.78.

These metrics, and several others, help EXPE earn a Value grade of A, while ZLNDY has been given a Value grade of C.

Both EXPE and ZLNDY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EXPE is the superior value option right now.


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Expedia Group, Inc. (EXPE) - free report >>

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