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DIS vs. PSO: Which Stock Is the Better Value Option?
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Investors interested in Media Conglomerates stocks are likely familiar with Walt Disney (DIS - Free Report) and Pearson (PSO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
Right now, Walt Disney is sporting a Zacks Rank of #2 (Buy), while Pearson has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that DIS likely has seen a stronger improvement to its earnings outlook than PSO has recently. But this is just one piece of the puzzle 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
DIS currently has a forward P/E ratio of 19.32, while PSO has a forward P/E of 19.92. We also note that DIS has a PEG ratio of 1.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PSO currently has a PEG ratio of 2.63.
Another notable valuation metric for DIS is its P/B ratio of 1.84. 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, PSO has a P/B of 2.13.
These metrics, and several others, help DIS earn a Value grade of B, while PSO has been given a Value grade of C.
DIS sticks out from PSO in both our Zacks Rank and Style Scores models, so value investors will likely feel that DIS is the better option right now.
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DIS vs. PSO: Which Stock Is the Better Value Option?
Investors interested in Media Conglomerates stocks are likely familiar with Walt Disney (DIS - Free Report) and Pearson (PSO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
Right now, Walt Disney is sporting a Zacks Rank of #2 (Buy), while Pearson has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that DIS likely has seen a stronger improvement to its earnings outlook than PSO has recently. But this is just one piece of the puzzle 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
DIS currently has a forward P/E ratio of 19.32, while PSO has a forward P/E of 19.92. We also note that DIS has a PEG ratio of 1.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PSO currently has a PEG ratio of 2.63.
Another notable valuation metric for DIS is its P/B ratio of 1.84. 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, PSO has a P/B of 2.13.
These metrics, and several others, help DIS earn a Value grade of B, while PSO has been given a Value grade of C.
DIS sticks out from PSO in both our Zacks Rank and Style Scores models, so value investors will likely feel that DIS is the better option right now.