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AMZN or CPNG: Which Is the Better Value Stock Right Now?
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Investors interested in Internet - Commerce stocks are likely familiar with Amazon (AMZN - Free Report) and Coupang, Inc. (CPNG - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Amazon has a Zacks Rank of #2 (Buy), while Coupang, Inc. has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AMZN 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 also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
AMZN currently has a forward P/E ratio of 41.29, while CPNG has a forward P/E of 66.18. We also note that AMZN has a PEG ratio of 1.39. 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. CPNG currently has a PEG ratio of 40.35.
Another notable valuation metric for AMZN is its P/B ratio of 9.01. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CPNG has a P/B of 9.88.
These metrics, and several others, help AMZN earn a Value grade of B, while CPNG has been given a Value grade of C.
AMZN 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 AMZN is likely the superior value option right now.
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AMZN or CPNG: Which Is the Better Value Stock Right Now?
Investors interested in Internet - Commerce stocks are likely familiar with Amazon (AMZN - Free Report) and Coupang, Inc. (CPNG - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Amazon has a Zacks Rank of #2 (Buy), while Coupang, Inc. has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AMZN 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 also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
AMZN currently has a forward P/E ratio of 41.29, while CPNG has a forward P/E of 66.18. We also note that AMZN has a PEG ratio of 1.39. 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. CPNG currently has a PEG ratio of 40.35.
Another notable valuation metric for AMZN is its P/B ratio of 9.01. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CPNG has a P/B of 9.88.
These metrics, and several others, help AMZN earn a Value grade of B, while CPNG has been given a Value grade of C.
AMZN 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 AMZN is likely the superior value option right now.