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VAC or TCOM: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Leisure and Recreation Services sector might want to consider either Marriott Vacations Worldwide (VAC - Free Report) or Trip.com (TCOM - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Marriott Vacations Worldwide and Trip.com are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VAC has an improving earnings outlook. But this is only part of the picture 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.
VAC currently has a forward P/E ratio of 12.42, while TCOM has a forward P/E of 17.89. We also note that VAC has a PEG ratio of 1.82. 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. TCOM currently has a PEG ratio of 2.67.
Another notable valuation metric for VAC is its P/B ratio of 1.17. 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, TCOM has a P/B of 2.06.
Based on these metrics and many more, VAC holds a Value grade of A, while TCOM has a Value grade of C.
VAC sticks out from TCOM in both our Zacks Rank and Style Scores models, so value investors will likely feel that VAC is the better option right now.
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VAC or TCOM: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Leisure and Recreation Services sector might want to consider either Marriott Vacations Worldwide (VAC - Free Report) or Trip.com (TCOM - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Marriott Vacations Worldwide and Trip.com are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VAC has an improving earnings outlook. But this is only part of the picture 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.
VAC currently has a forward P/E ratio of 12.42, while TCOM has a forward P/E of 17.89. We also note that VAC has a PEG ratio of 1.82. 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. TCOM currently has a PEG ratio of 2.67.
Another notable valuation metric for VAC is its P/B ratio of 1.17. 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, TCOM has a P/B of 2.06.
Based on these metrics and many more, VAC holds a Value grade of A, while TCOM has a Value grade of C.
VAC sticks out from TCOM in both our Zacks Rank and Style Scores models, so value investors will likely feel that VAC is the better option right now.