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WB or SSTK: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Internet - Content sector have probably already heard of Weibo Corporation (WB - Free Report) and Shutterstock (SSTK - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Weibo Corporation is sporting a Zacks Rank of #2 (Buy), while Shutterstock has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that WB likely has seen a stronger improvement to its earnings outlook than SSTK 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.

WB currently has a forward P/E ratio of 7.80, while SSTK has a forward P/E of 18.57. We also note that WB has a PEG ratio of 0.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SSTK currently has a PEG ratio of 3.89.

Another notable valuation metric for WB is its P/B ratio of 1.25. 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, SSTK has a P/B of 5.94.

These are just a few of the metrics contributing to WB's Value grade of B and SSTK's Value grade of C.

WB has seen stronger estimate revision activity and sports more attractive valuation metrics than SSTK, so it seems like value investors will conclude that WB is the superior option right now.


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