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PENN or TTWO: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Gaming sector have probably already heard of PENN Entertainment (PENN - Free Report) and Take-Two Interactive (TTWO - 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.
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 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, PENN Entertainment has a Zacks Rank of #1 (Strong Buy), while Take-Two Interactive has a Zacks Rank of #3 (Hold). This means that PENN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
PENN currently has a forward P/E ratio of 14.95, while TTWO has a forward P/E of 29.66. We also note that PENN has a PEG ratio of 0.46. 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. TTWO currently has a PEG ratio of 1.08.
Another notable valuation metric for PENN is its P/B ratio of 1.11. 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, TTWO has a P/B of 10.82.
Based on these metrics and many more, PENN holds a Value grade of A, while TTWO has a Value grade of F.
PENN has seen stronger estimate revision activity and sports more attractive valuation metrics than TTWO, so it seems like value investors will conclude that PENN is the superior option right now.
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PENN or TTWO: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Gaming sector have probably already heard of PENN Entertainment (PENN - Free Report) and Take-Two Interactive (TTWO - 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.
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 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, PENN Entertainment has a Zacks Rank of #1 (Strong Buy), while Take-Two Interactive has a Zacks Rank of #3 (Hold). This means that PENN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
PENN currently has a forward P/E ratio of 14.95, while TTWO has a forward P/E of 29.66. We also note that PENN has a PEG ratio of 0.46. 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. TTWO currently has a PEG ratio of 1.08.
Another notable valuation metric for PENN is its P/B ratio of 1.11. 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, TTWO has a P/B of 10.82.
Based on these metrics and many more, PENN holds a Value grade of A, while TTWO has a Value grade of F.
PENN has seen stronger estimate revision activity and sports more attractive valuation metrics than TTWO, so it seems like value investors will conclude that PENN is the superior option right now.