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UBSFY or CHDN: Which Is the Better Value Stock Right Now?

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Investors with an interest in Gaming stocks have likely encountered both UbiSoft Entertainment Inc. (UBSFY - Free Report) and Churchill Downs (CHDN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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

UbiSoft Entertainment Inc. and Churchill Downs are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.

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.

UBSFY currently has a forward P/E ratio of 11.46, while CHDN has a forward P/E of 22.71. We also note that UBSFY has a PEG ratio of 0.29. 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. CHDN currently has a PEG ratio of 3.69.

Another notable valuation metric for UBSFY is its P/B ratio of 1.73. 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, CHDN has a P/B of 11.54.

Based on these metrics and many more, UBSFY holds a Value grade of A, while CHDN has a Value grade of C.

Both UBSFY and CHDN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that UBSFY is the superior value option right now.


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Churchill Downs, Incorporated (CHDN) - free report >>

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