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NCLH vs. MTN: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Leisure and Recreation Services sector have probably already heard of Norwegian Cruise Line (NCLH - Free Report) and Vail Resorts (MTN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.
Norwegian Cruise Line has a Zacks Rank of #1 (Strong Buy), while Vail Resorts has a Zacks Rank of #5 (Strong Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NCLH is likely seeing its earnings outlook improve to a greater extent. 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
NCLH currently has a forward P/E ratio of 10.98, while MTN has a forward P/E of 22.36. We also note that NCLH has a PEG ratio of 0.89. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MTN currently has a PEG ratio of 2.52.
Another notable valuation metric for NCLH is its P/B ratio of 6.53. 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, MTN has a P/B of 7.12.
Based on these metrics and many more, NCLH holds a Value grade of A, while MTN has a Value grade of D.
NCLH stands above MTN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NCLH is the superior value option right now.
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NCLH vs. MTN: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Leisure and Recreation Services sector have probably already heard of Norwegian Cruise Line (NCLH - Free Report) and Vail Resorts (MTN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.
Norwegian Cruise Line has a Zacks Rank of #1 (Strong Buy), while Vail Resorts has a Zacks Rank of #5 (Strong Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NCLH is likely seeing its earnings outlook improve to a greater extent. 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
NCLH currently has a forward P/E ratio of 10.98, while MTN has a forward P/E of 22.36. We also note that NCLH has a PEG ratio of 0.89. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MTN currently has a PEG ratio of 2.52.
Another notable valuation metric for NCLH is its P/B ratio of 6.53. 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, MTN has a P/B of 7.12.
Based on these metrics and many more, NCLH holds a Value grade of A, while MTN has a Value grade of D.
NCLH stands above MTN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NCLH is the superior value option right now.