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ZLNDY vs. RVLV: 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 Revolve Group (RVLV - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Zalando is sporting a Zacks Rank of #2 (Buy), while Revolve Group has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ZLNDY is likely seeing its earnings outlook improve to a greater extent. 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.

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 25.35, while RVLV has a forward P/E of 26.90. We also note that ZLNDY has a PEG ratio of 0.54. 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. RVLV currently has a PEG ratio of 9.37.

Another notable valuation metric for ZLNDY is its P/B ratio of 2.31. 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, RVLV has a P/B of 2.42.

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

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


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Zalando (ZLNDY) - free report >>

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