Back to top

Image: Bigstock

UBSFY vs. NGMS: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors with an interest in Gaming stocks have likely encountered both UbiSoft Entertainment Inc. (UBSFY - Free Report) and NeoGames S.A. . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, UbiSoft Entertainment Inc. is sporting a Zacks Rank of #2 (Buy), while NeoGames S.A. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that UBSFY has an improving earnings outlook. But this is just one factor that value investors are interested in.

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 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 17.87, while NGMS has a forward P/E of 1,695. We also note that UBSFY has a PEG ratio of 15.01. 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. NGMS currently has a PEG ratio of 51.36.

Another notable valuation metric for UBSFY is its P/B ratio of 1.87. 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, NGMS has a P/B of 2.21.

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

UBSFY sticks out from NGMS in both our Zacks Rank and Style Scores models, so value investors will likely feel that UBSFY is the better option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


UbiSoft Entertainment Inc. (UBSFY) - free report >>

Published in