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LTH or ABNB: 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 Life Time Group Holdings, Inc. (LTH - Free Report) and Airbnb, Inc. (ABNB - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Life Time Group Holdings, Inc. has a Zacks Rank of #2 (Buy), while Airbnb, Inc. has a Zacks Rank of #3 (Hold) right now. 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 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.

LTH currently has a forward P/E ratio of 23.46, while ABNB has a forward P/E of 32.13. We also note that LTH has a PEG ratio of 1.35. 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. ABNB currently has a PEG ratio of 1.94.

Another notable valuation metric for LTH is its P/B ratio of 2.76. 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, ABNB has a P/B of 12.86.

These are just a few of the metrics contributing to LTH's Value grade of B and ABNB's Value grade of F.

LTH sticks out from ABNB 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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