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PDD vs. GLBE: Which Stock Is the Better Value Option?
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Investors interested in Internet - Commerce stocks are likely familiar with PDD Holdings Inc. Sponsored ADR (PDD - Free Report) and Global-e Online Ltd. (GLBE - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, PDD Holdings Inc. Sponsored ADR is sporting a Zacks Rank of #1 (Strong Buy), while Global-e Online Ltd. has a Zacks Rank of #2 (Buy). This means that PDD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
PDD currently has a forward P/E ratio of 14.06, while GLBE has a forward P/E of 115.73. We also note that PDD has a PEG ratio of 1.45. 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. GLBE currently has a PEG ratio of 1.95.
Another notable valuation metric for PDD is its P/B ratio of 3.73. 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, GLBE has a P/B of 6.83.
Based on these metrics and many more, PDD holds a Value grade of B, while GLBE has a Value grade of D.
PDD has seen stronger estimate revision activity and sports more attractive valuation metrics than GLBE, so it seems like value investors will conclude that PDD is the superior option right now.
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PDD vs. GLBE: Which Stock Is the Better Value Option?
Investors interested in Internet - Commerce stocks are likely familiar with PDD Holdings Inc. Sponsored ADR (PDD - Free Report) and Global-e Online Ltd. (GLBE - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, PDD Holdings Inc. Sponsored ADR is sporting a Zacks Rank of #1 (Strong Buy), while Global-e Online Ltd. has a Zacks Rank of #2 (Buy). This means that PDD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
PDD currently has a forward P/E ratio of 14.06, while GLBE has a forward P/E of 115.73. We also note that PDD has a PEG ratio of 1.45. 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. GLBE currently has a PEG ratio of 1.95.
Another notable valuation metric for PDD is its P/B ratio of 3.73. 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, GLBE has a P/B of 6.83.
Based on these metrics and many more, PDD holds a Value grade of B, while GLBE has a Value grade of D.
PDD has seen stronger estimate revision activity and sports more attractive valuation metrics than GLBE, so it seems like value investors will conclude that PDD is the superior option right now.