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LVS or RRR: 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 Las Vegas Sands (LVS - Free Report) or Red Rock Resorts (RRR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Las Vegas Sands and Red Rock Resorts are holding a Zacks Rank of #2 (Buy). 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 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.
LVS currently has a forward P/E ratio of 20.56, while RRR has a forward P/E of 35.54. We also note that LVS has a PEG ratio of 2.01. 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. RRR currently has a PEG ratio of 2.53.
Another notable valuation metric for LVS is its P/B ratio of 16.62. 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, RRR has a P/B of 22.27.
These metrics, and several others, help LVS earn a Value grade of B, while RRR has been given a Value grade of C.
Both LVS and RRR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that LVS is the superior value option right now.
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LVS or RRR: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Gaming sector might want to consider either Las Vegas Sands (LVS - Free Report) or Red Rock Resorts (RRR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Las Vegas Sands and Red Rock Resorts are holding a Zacks Rank of #2 (Buy). 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 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.
LVS currently has a forward P/E ratio of 20.56, while RRR has a forward P/E of 35.54. We also note that LVS has a PEG ratio of 2.01. 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. RRR currently has a PEG ratio of 2.53.
Another notable valuation metric for LVS is its P/B ratio of 16.62. 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, RRR has a P/B of 22.27.
These metrics, and several others, help LVS earn a Value grade of B, while RRR has been given a Value grade of C.
Both LVS and RRR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that LVS is the superior value option right now.