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VNET or DASH: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Internet - Services sector might want to consider either 21Vianet (VNET - Free Report) or DoorDash, Inc. (DASH - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
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.
Right now, 21Vianet is sporting a Zacks Rank of #2 (Buy), while DoorDash, Inc. 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 VNET is likely seeing its earnings outlook improve to a greater extent. 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.
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.
VNET currently has a forward P/E ratio of 195, while DASH has a forward P/E of 606.80. We also note that VNET has a PEG ratio of 6.84. 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. DASH currently has a PEG ratio of 14.40.
Another notable valuation metric for VNET is its P/B ratio of 0.31. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DASH has a P/B of 8.17.
These are just a few of the metrics contributing to VNET's Value grade of B and DASH's Value grade of F.
VNET stands above DASH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VNET is the superior value option right now.
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VNET or DASH: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Internet - Services sector might want to consider either 21Vianet (VNET - Free Report) or DoorDash, Inc. (DASH - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
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.
Right now, 21Vianet is sporting a Zacks Rank of #2 (Buy), while DoorDash, Inc. 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 VNET is likely seeing its earnings outlook improve to a greater extent. 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.
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.
VNET currently has a forward P/E ratio of 195, while DASH has a forward P/E of 606.80. We also note that VNET has a PEG ratio of 6.84. 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. DASH currently has a PEG ratio of 14.40.
Another notable valuation metric for VNET is its P/B ratio of 0.31. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DASH has a P/B of 8.17.
These are just a few of the metrics contributing to VNET's Value grade of B and DASH's Value grade of F.
VNET stands above DASH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VNET is the superior value option right now.