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.
BYD vs. TTWO: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors looking for stocks in the Gaming sector might want to consider either Boyd Gaming (BYD - Free Report) or Take-Two Interactive (TTWO - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Boyd Gaming and Take-Two Interactive are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that BYD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
BYD currently has a forward P/E ratio of 12.42, while TTWO has a forward P/E of 87.96. We also note that BYD has a PEG ratio of 2.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TTWO currently has a PEG ratio of 2.57.
Another notable valuation metric for BYD is its P/B ratio of 4.92. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TTWO has a P/B of 12.77.
Based on these metrics and many more, BYD holds a Value grade of A, while TTWO has a Value grade of F.
BYD has seen stronger estimate revision activity and sports more attractive valuation metrics than TTWO, so it seems like value investors will conclude that BYD is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BYD vs. TTWO: Which Stock Is the Better Value Option?
Investors looking for stocks in the Gaming sector might want to consider either Boyd Gaming (BYD - Free Report) or Take-Two Interactive (TTWO - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Boyd Gaming and Take-Two Interactive are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that BYD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
BYD currently has a forward P/E ratio of 12.42, while TTWO has a forward P/E of 87.96. We also note that BYD has a PEG ratio of 2.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TTWO currently has a PEG ratio of 2.57.
Another notable valuation metric for BYD is its P/B ratio of 4.92. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TTWO has a P/B of 12.77.
Based on these metrics and many more, BYD holds a Value grade of A, while TTWO has a Value grade of F.
BYD has seen stronger estimate revision activity and sports more attractive valuation metrics than TTWO, so it seems like value investors will conclude that BYD is the superior option right now.