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ATAT 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 Atour Lifestyle Holdings Limited Sponsored ADR (ATAT - 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.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Atour Lifestyle Holdings Limited Sponsored ADR is sporting a Zacks Rank of #2 (Buy), while Viking Holdings has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ATAT has an improving earnings outlook. But this is only part of the picture 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 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.

ATAT currently has a forward P/E ratio of 16.26, while VIK has a forward P/E of 29.03. We also note that ATAT has a PEG ratio of 0.98. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. VIK currently has a PEG ratio of 1.10.

Another notable valuation metric for ATAT is its P/B ratio of 9.73. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, VIK has a P/B of 24.59.

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

ATAT stands above VIK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ATAT is the superior value option right now.

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