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DTC or BKNG: Which Is the Better Value Stock Right Now?
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Investors interested in Internet - Commerce stocks are likely familiar with Solo Brands, Inc. (DTC - Free Report) and Booking Holdings (BKNG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, both Solo Brands, Inc. and Booking Holdings 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 only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
DTC currently has a forward P/E ratio of 6.91, while BKNG has a forward P/E of 19.49. We also note that DTC has a PEG ratio of 0.40. 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. BKNG currently has a PEG ratio of 1.17.
Another notable valuation metric for DTC is its P/B ratio of 1.11. 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, BKNG has a P/B of 34.52.
These metrics, and several others, help DTC earn a Value grade of A, while BKNG has been given a Value grade of C.
Both DTC and BKNG are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DTC is the superior value option right now.
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DTC or BKNG: Which Is the Better Value Stock Right Now?
Investors interested in Internet - Commerce stocks are likely familiar with Solo Brands, Inc. (DTC - Free Report) and Booking Holdings (BKNG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, both Solo Brands, Inc. and Booking Holdings 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 only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
DTC currently has a forward P/E ratio of 6.91, while BKNG has a forward P/E of 19.49. We also note that DTC has a PEG ratio of 0.40. 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. BKNG currently has a PEG ratio of 1.17.
Another notable valuation metric for DTC is its P/B ratio of 1.11. 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, BKNG has a P/B of 34.52.
These metrics, and several others, help DTC earn a Value grade of A, while BKNG has been given a Value grade of C.
Both DTC and BKNG are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DTC is the superior value option right now.