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

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Investors with an interest in Leisure and Recreation Services stocks have likely encountered both Expedia (EXPE - Free Report) and Viking Holdings (VIK - 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.

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

Both Expedia and Viking Holdings have a Zacks Rank of #2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

EXPE currently has a forward P/E ratio of 13.44, while VIK has a forward P/E of 29.19. We also note that EXPE has a PEG ratio of 0.60. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VIK currently has a PEG ratio of 1.11.

Another notable valuation metric for EXPE is its P/B ratio of 17.69. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, VIK has a P/B of 40.48.

These are just a few of the metrics contributing to EXPE's Value grade of A and VIK's Value grade of D.

Both EXPE and VIK are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EXPE is the superior value option right now.

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