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YELP or RELX: Which Is the Better Value Stock Right Now?
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Investors interested in Internet - Content stocks are likely familiar with Yelp (YELP - Free Report) and RELX PLC (RELX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Yelp is sporting a Zacks Rank of #2 (Buy), while RELX PLC has a Zacks Rank of #4 (Sell). This means that YELP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
YELP currently has a forward P/E ratio of 10.22, while RELX has a forward P/E of 20.64. We also note that YELP has a PEG ratio of 1.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RELX currently has a PEG ratio of 1.72.
Another notable valuation metric for YELP is its P/B ratio of 1.57. 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, RELX has a P/B of 40.36.
These are just a few of the metrics contributing to YELP's Value grade of A and RELX's Value grade of D.
YELP sticks out from RELX in both our Zacks Rank and Style Scores models, so value investors will likely feel that YELP is the better option right now.
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YELP or RELX: Which Is the Better Value Stock Right Now?
Investors interested in Internet - Content stocks are likely familiar with Yelp (YELP - Free Report) and RELX PLC (RELX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Yelp is sporting a Zacks Rank of #2 (Buy), while RELX PLC has a Zacks Rank of #4 (Sell). This means that YELP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
YELP currently has a forward P/E ratio of 10.22, while RELX has a forward P/E of 20.64. We also note that YELP has a PEG ratio of 1.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RELX currently has a PEG ratio of 1.72.
Another notable valuation metric for YELP is its P/B ratio of 1.57. 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, RELX has a P/B of 40.36.
These are just a few of the metrics contributing to YELP's Value grade of A and RELX's Value grade of D.
YELP sticks out from RELX in both our Zacks Rank and Style Scores models, so value investors will likely feel that YELP is the better option right now.