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

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Investors interested in Internet - Commerce stocks are likely familiar with Zalando (ZLNDY - Free Report) and Amazon (AMZN - Free Report) . 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 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.

Zalando and Amazon are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

ZLNDY currently has a forward P/E ratio of 51.34, while AMZN has a forward P/E of 67.38. We also note that ZLNDY has a PEG ratio of 2.74. 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. AMZN currently has a PEG ratio of 3.67.

Another notable valuation metric for ZLNDY is its P/B ratio of 4.52. 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, AMZN has a P/B of 6.91.

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

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


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