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LNW or DKNG: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Gaming sector have probably already heard of Light & Wonder (LNW - Free Report) and DraftKings (DKNG - 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.
Light & Wonder has a Zacks Rank of #1 (Strong Buy), while DraftKings has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that LNW likely has seen a stronger improvement to its earnings outlook than DKNG has recently. However, value investors will care about much more than just this.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
LNW currently has a forward P/E ratio of 17.65, while DKNG has a forward P/E of 33.50. We also note that LNW has a PEG ratio of 0.63. 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. DKNG currently has a PEG ratio of 0.64.
Another notable valuation metric for LNW is its P/B ratio of 13.32. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DKNG has a P/B of 45.31.
These metrics, and several others, help LNW earn a Value grade of B, while DKNG has been given a Value grade of D.
LNW stands above DKNG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LNW is the superior value option right now.
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LNW or DKNG: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Gaming sector have probably already heard of Light & Wonder (LNW - Free Report) and DraftKings (DKNG - 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.
Light & Wonder has a Zacks Rank of #1 (Strong Buy), while DraftKings has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that LNW likely has seen a stronger improvement to its earnings outlook than DKNG has recently. However, value investors will care about much more than just this.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
LNW currently has a forward P/E ratio of 17.65, while DKNG has a forward P/E of 33.50. We also note that LNW has a PEG ratio of 0.63. 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. DKNG currently has a PEG ratio of 0.64.
Another notable valuation metric for LNW is its P/B ratio of 13.32. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DKNG has a P/B of 45.31.
These metrics, and several others, help LNW earn a Value grade of B, while DKNG has been given a Value grade of D.
LNW stands above DKNG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LNW is the superior value option right now.