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EXPE vs. ABNB: Which Stock Is the Better Value Option?
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Investors interested in Leisure and Recreation Services stocks are likely familiar with Expedia (EXPE - Free Report) and Airbnb, Inc. (ABNB - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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.
Expedia has a Zacks Rank of #1 (Strong Buy), while Airbnb, Inc. has a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that EXPE likely has seen a stronger improvement to its earnings outlook than ABNB has recently. But this is only part of the picture for value investors.
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 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.
EXPE currently has a forward P/E ratio of 12.53, while ABNB has a forward P/E of 32.99. We also note that EXPE has a PEG ratio of 0.52. 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 1.92.
Another notable valuation metric for EXPE is its P/B ratio of 10.61. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ABNB has a P/B of 11.61.
These metrics, and several others, help EXPE earn a Value grade of B, while ABNB has been given a Value grade of F.
EXPE 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 EXPE is likely the superior value option right now.
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EXPE vs. ABNB: Which Stock Is the Better Value Option?
Investors interested in Leisure and Recreation Services stocks are likely familiar with Expedia (EXPE - Free Report) and Airbnb, Inc. (ABNB - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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.
Expedia has a Zacks Rank of #1 (Strong Buy), while Airbnb, Inc. has a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that EXPE likely has seen a stronger improvement to its earnings outlook than ABNB has recently. But this is only part of the picture for value investors.
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 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.
EXPE currently has a forward P/E ratio of 12.53, while ABNB has a forward P/E of 32.99. We also note that EXPE has a PEG ratio of 0.52. 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 1.92.
Another notable valuation metric for EXPE is its P/B ratio of 10.61. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ABNB has a P/B of 11.61.
These metrics, and several others, help EXPE earn a Value grade of B, while ABNB has been given a Value grade of F.
EXPE 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 EXPE is likely the superior value option right now.