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RCL or MTN: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Leisure and Recreation Services sector might want to consider either Royal Caribbean (RCL - Free Report) or Vail Resorts (MTN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Royal Caribbean has a Zacks Rank of #1 (Strong Buy), while Vail Resorts has a Zacks Rank of #5 (Strong Sell). This means that RCL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
RCL currently has a forward P/E ratio of 13.89, while MTN has a forward P/E of 28.75. We also note that RCL has a PEG ratio of 0.51. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MTN currently has a PEG ratio of 2.36.
Another notable valuation metric for RCL is its P/B ratio of 7.27. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MTN has a P/B of 7.35.
These metrics, and several others, help RCL earn a Value grade of B, while MTN has been given a Value grade of D.
RCL stands above MTN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that RCL is the superior value option right now.
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RCL or MTN: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Leisure and Recreation Services sector might want to consider either Royal Caribbean (RCL - Free Report) or Vail Resorts (MTN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Royal Caribbean has a Zacks Rank of #1 (Strong Buy), while Vail Resorts has a Zacks Rank of #5 (Strong Sell). This means that RCL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
RCL currently has a forward P/E ratio of 13.89, while MTN has a forward P/E of 28.75. We also note that RCL has a PEG ratio of 0.51. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MTN currently has a PEG ratio of 2.36.
Another notable valuation metric for RCL is its P/B ratio of 7.27. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MTN has a P/B of 7.35.
These metrics, and several others, help RCL earn a Value grade of B, while MTN has been given a Value grade of D.
RCL stands above MTN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that RCL is the superior value option right now.