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LTH or VIK: Which Is the Better Value Stock Right Now?

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Investors interested in Leisure and Recreation Services stocks are likely familiar with Life Time Group Holdings, Inc. (LTH - Free Report) and Viking Holdings (VIK - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, Life Time Group Holdings, Inc. has a Zacks Rank of #2 (Buy), while Viking Holdings has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LTH has an improving earnings outlook. 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.

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.

LTH currently has a forward P/E ratio of 20.98, while VIK has a forward P/E of 28.67. We also note that LTH has a PEG ratio of 1.28. 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. VIK currently has a PEG ratio of 1.36.

Another notable valuation metric for LTH is its P/B ratio of 2.4. 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, VIK has a P/B of 39.29.

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

LTH sticks out from VIK in both our Zacks Rank and Style Scores models, so value investors will likely feel that LTH is the better option right now.

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