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TRIP or EBAY: Which Is the Better Value Stock Right Now?
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Investors interested in Internet - Commerce stocks are likely familiar with TripAdvisor (TRIP - Free Report) and eBay (EBAY - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, TripAdvisor has a Zacks Rank of #1 (Strong Buy), while eBay has a Zacks Rank of #3 (Hold). This means that TRIP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
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.
TRIP currently has a forward P/E ratio of 8.31, while EBAY has a forward P/E of 15.49. We also note that TRIP has a PEG ratio of 0.72. 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. EBAY currently has a PEG ratio of 1.72.
Another notable valuation metric for TRIP is its P/B ratio of 2.43. 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, EBAY has a P/B of 8.77.
Based on these metrics and many more, TRIP holds a Value grade of A, while EBAY has a Value grade of C.
TRIP 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 TRIP is likely the superior value option right now.
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TRIP or EBAY: Which Is the Better Value Stock Right Now?
Investors interested in Internet - Commerce stocks are likely familiar with TripAdvisor (TRIP - Free Report) and eBay (EBAY - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, TripAdvisor has a Zacks Rank of #1 (Strong Buy), while eBay has a Zacks Rank of #3 (Hold). This means that TRIP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
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.
TRIP currently has a forward P/E ratio of 8.31, while EBAY has a forward P/E of 15.49. We also note that TRIP has a PEG ratio of 0.72. 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. EBAY currently has a PEG ratio of 1.72.
Another notable valuation metric for TRIP is its P/B ratio of 2.43. 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, EBAY has a P/B of 8.77.
Based on these metrics and many more, TRIP holds a Value grade of A, while EBAY has a Value grade of C.
TRIP 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 TRIP is likely the superior value option right now.