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VSNT vs. DIS: Which Stock Is the Better Value Option?

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Investors interested in Media Conglomerates stocks are likely familiar with Versant (VSNT - Free Report) and Walt Disney (DIS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Versant has a Zacks Rank of #2 (Buy), while Walt Disney has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that VSNT likely has seen a stronger improvement to its earnings outlook than DIS has recently. But this is just one piece of the puzzle for value investors.

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.

VSNT currently has a forward P/E ratio of 7.51, while DIS has a forward P/E of 14.47. We also note that VSNT has a PEG ratio of 0.67. 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. DIS currently has a PEG ratio of 1.25.

Another notable valuation metric for VSNT is its P/B ratio of 0.53. 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, DIS has a P/B of 1.6.

Based on these metrics and many more, VSNT holds a Value grade of A, while DIS has a Value grade of C.

VSNT 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 VSNT is likely the superior value option right now.

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