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CNK or MTN: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Leisure and Recreation Services sector have probably already heard of Cinemark Holdings (CNK - Free Report) and Vail Resorts (MTN - 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.
Currently, Cinemark Holdings has a Zacks Rank of #2 (Buy), while Vail Resorts has a Zacks Rank of #5 (Strong Sell). This means that CNK's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
CNK currently has a forward P/E ratio of 16.30, while MTN has a forward P/E of 26.03. We also note that CNK has a PEG ratio of 1.63. 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. MTN currently has a PEG ratio of 2.19.
Another notable valuation metric for CNK is its P/B ratio of 6.20. 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 6.53.
These are just a few of the metrics contributing to CNK's Value grade of A and MTN's Value grade of C.
CNK stands above MTN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CNK is the superior value option right now.
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CNK or MTN: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Leisure and Recreation Services sector have probably already heard of Cinemark Holdings (CNK - Free Report) and Vail Resorts (MTN - 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.
Currently, Cinemark Holdings has a Zacks Rank of #2 (Buy), while Vail Resorts has a Zacks Rank of #5 (Strong Sell). This means that CNK's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
CNK currently has a forward P/E ratio of 16.30, while MTN has a forward P/E of 26.03. We also note that CNK has a PEG ratio of 1.63. 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. MTN currently has a PEG ratio of 2.19.
Another notable valuation metric for CNK is its P/B ratio of 6.20. 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 6.53.
These are just a few of the metrics contributing to CNK's Value grade of A and MTN's Value grade of C.
CNK stands above MTN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CNK is the superior value option right now.