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BYD or TTWO: Which Is the Better Value Stock Right Now?

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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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Boyd Gaming has a Zacks Rank of #1 (Strong Buy), while Take-Two Interactive has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BYD has an improving earnings outlook. However, value investors will care about much more than just this.

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 12.08, while TTWO has a forward P/E of 88.27. We also note that BYD has a PEG ratio of 2.36. 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 2.58.

Another notable valuation metric for BYD is its P/B ratio of 4.79. 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, TTWO has a P/B of 13.23.

Based on these metrics and many more, BYD holds a Value grade of A, while TTWO has a Value grade of D.

BYD is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BYD is likely the superior value option right now.


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Take-Two Interactive Software, Inc. (TTWO) - free report >>

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