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GLOB vs. NTES: Which Stock Should Value Investors Buy Now?
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Investors interested in Internet - Software and Services stocks are likely familiar with Globant (GLOB - Free Report) and NetEase (NTES - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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.
Both Globant and NetEase have a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.
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.
GLOB currently has a forward P/E ratio of 15.21, while NTES has a forward P/E of 15.47. We also note that GLOB has a PEG ratio of 2.51. 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. NTES currently has a PEG ratio of 4.11.
Another notable valuation metric for GLOB is its P/B ratio of 1.94. 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, NTES has a P/B of 4.1.
These are just a few of the metrics contributing to GLOB's Value grade of B and NTES's Value grade of C.
Both GLOB and NTES are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GLOB is the superior value option right now.
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GLOB vs. NTES: Which Stock Should Value Investors Buy Now?
Investors interested in Internet - Software and Services stocks are likely familiar with Globant (GLOB - Free Report) and NetEase (NTES - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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.
Both Globant and NetEase have a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.
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.
GLOB currently has a forward P/E ratio of 15.21, while NTES has a forward P/E of 15.47. We also note that GLOB has a PEG ratio of 2.51. 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. NTES currently has a PEG ratio of 4.11.
Another notable valuation metric for GLOB is its P/B ratio of 1.94. 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, NTES has a P/B of 4.1.
These are just a few of the metrics contributing to GLOB's Value grade of B and NTES's Value grade of C.
Both GLOB and NTES are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GLOB is the superior value option right now.