We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
YELP vs. RELX: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors with an interest in Internet - Content stocks have likely encountered both Yelp (YELP - Free Report) and RELX PLC (RELX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Yelp is sporting a Zacks Rank of #2 (Buy), while RELX PLC has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that YELP likely has seen a stronger improvement to its earnings outlook than RELX has recently. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
YELP currently has a forward P/E ratio of 16.41, while RELX has a forward P/E of 30.45. We also note that YELP has a PEG ratio of 0.82. 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. RELX currently has a PEG ratio of 3.38.
Another notable valuation metric for YELP is its P/B ratio of 3.1. 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, RELX has a P/B of 32.45.
These are just a few of the metrics contributing to YELP's Value grade of A and RELX's Value grade of D.
YELP stands above RELX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that YELP is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
YELP vs. RELX: Which Stock Should Value Investors Buy Now?
Investors with an interest in Internet - Content stocks have likely encountered both Yelp (YELP - Free Report) and RELX PLC (RELX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Yelp is sporting a Zacks Rank of #2 (Buy), while RELX PLC has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that YELP likely has seen a stronger improvement to its earnings outlook than RELX has recently. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
YELP currently has a forward P/E ratio of 16.41, while RELX has a forward P/E of 30.45. We also note that YELP has a PEG ratio of 0.82. 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. RELX currently has a PEG ratio of 3.38.
Another notable valuation metric for YELP is its P/B ratio of 3.1. 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, RELX has a P/B of 32.45.
These are just a few of the metrics contributing to YELP's Value grade of A and RELX's Value grade of D.
YELP stands above RELX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that YELP is the superior value option right now.