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PDD or GLBE: Which Is the Better Value Stock Right Now?

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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 presents investors with the better value opportunity right now? Let's take a closer look.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

PDD Holdings Inc. Sponsored ADR and Global-e Online Ltd. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PDD has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

PDD currently has a forward P/E ratio of 13.36, while GLBE has a forward P/E of 102.40. We also note that PDD has a PEG ratio of 1.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GLBE currently has a PEG ratio of 1.73.

Another notable valuation metric for PDD is its P/B ratio of 3.54. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, GLBE has a P/B of 6.04.

Based on these metrics and many more, PDD holds a Value grade of B, while GLBE has a Value grade of D.

PDD stands above GLBE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PDD is the superior value option right now.


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