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JD vs. MELI: Which Stock Is the Better Value Option?
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Investors with an interest in Internet - Commerce stocks have likely encountered both JD.com, Inc. (JD - Free Report) and MercadoLibre (MELI - 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.
Currently, JD.com, Inc. has a Zacks Rank of #1 (Strong Buy), while MercadoLibre has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that JD likely has seen a stronger improvement to its earnings outlook than MELI has recently. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
JD currently has a forward P/E ratio of 8.72, while MELI has a forward P/E of 41.93. We also note that JD has a PEG ratio of 0.20. 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. MELI currently has a PEG ratio of 0.99.
Another notable valuation metric for JD is its P/B ratio of 1.04. 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, MELI has a P/B of 24.89.
These metrics, and several others, help JD earn a Value grade of A, while MELI has been given a Value grade of C.
JD is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that JD is likely the superior value option right now.
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JD vs. MELI: Which Stock Is the Better Value Option?
Investors with an interest in Internet - Commerce stocks have likely encountered both JD.com, Inc. (JD - Free Report) and MercadoLibre (MELI - 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.
Currently, JD.com, Inc. has a Zacks Rank of #1 (Strong Buy), while MercadoLibre has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that JD likely has seen a stronger improvement to its earnings outlook than MELI has recently. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
JD currently has a forward P/E ratio of 8.72, while MELI has a forward P/E of 41.93. We also note that JD has a PEG ratio of 0.20. 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. MELI currently has a PEG ratio of 0.99.
Another notable valuation metric for JD is its P/B ratio of 1.04. 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, MELI has a P/B of 24.89.
These metrics, and several others, help JD earn a Value grade of A, while MELI has been given a Value grade of C.
JD is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that JD is likely the superior value option right now.