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TRVG or GOOG: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Internet - Services sector might want to consider either Trivago N.V. ADS (TRVG - Free Report) or Alphabet Inc. (GOOG - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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.

Right now, Trivago N.V. ADS is sporting a Zacks Rank of #2 (Buy), while Alphabet Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TRVG likely has seen a stronger improvement to its earnings outlook than GOOG has recently. However, value investors will care about much more than just this.

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.

TRVG currently has a forward P/E ratio of 7.60, while GOOG has a forward P/E of 20.67. We also note that TRVG has a PEG ratio of 0.34. 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. GOOG currently has a PEG ratio of 1.46.

Another notable valuation metric for TRVG is its P/B ratio of 0.89. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, GOOG has a P/B of 5.29.

These are just a few of the metrics contributing to TRVG's Value grade of A and GOOG's Value grade of C.

TRVG stands above GOOG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TRVG is the superior value option right now.


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