Back to top

Image: Bigstock

UBSFY vs. SCPL: 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 SciPlay . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, UbiSoft Entertainment Inc. has a Zacks Rank of #2 (Buy), while SciPlay 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 only part of the picture 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

UBSFY currently has a forward P/E ratio of 18.67, while SCPL has a forward P/E of 21.99. We also note that UBSFY has a PEG ratio of 0.43. 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. SCPL currently has a PEG ratio of 3.56.

Another notable valuation metric for UBSFY is its P/B ratio of 2.16. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SCPL has a P/B of 4.16.

These metrics, and several others, help UBSFY earn a Value grade of A, while SCPL has been given a Value grade of C.

UBSFY stands above SCPL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that UBSFY is the superior value 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