We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RKUNY vs. TRVG: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors interested in Internet - Services stocks are likely familiar with Rakuten, Inc. (RKUNY - Free Report) and Trivago N.V. ADS (TRVG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Rakuten, Inc. and Trivago N.V. ADS are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that RKUNY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
RKUNY currently has a forward P/E ratio of 17.96, while TRVG has a forward P/E of 503.13. We also note that RKUNY has a PEG ratio of 2.40. 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. TRVG currently has a PEG ratio of 67.08.
Another notable valuation metric for RKUNY is its P/B ratio of 1.68. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TRVG has a P/B of 2.07.
These are just a few of the metrics contributing to RKUNY's Value grade of A and TRVG's Value grade of D.
RKUNY sticks out from TRVG in both our Zacks Rank and Style Scores models, so value investors will likely feel that RKUNY is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
RKUNY vs. TRVG: Which Stock Should Value Investors Buy Now?
Investors interested in Internet - Services stocks are likely familiar with Rakuten, Inc. (RKUNY - Free Report) and Trivago N.V. ADS (TRVG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Rakuten, Inc. and Trivago N.V. ADS are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that RKUNY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
RKUNY currently has a forward P/E ratio of 17.96, while TRVG has a forward P/E of 503.13. We also note that RKUNY has a PEG ratio of 2.40. 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. TRVG currently has a PEG ratio of 67.08.
Another notable valuation metric for RKUNY is its P/B ratio of 1.68. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TRVG has a P/B of 2.07.
These are just a few of the metrics contributing to RKUNY's Value grade of A and TRVG's Value grade of D.
RKUNY sticks out from TRVG in both our Zacks Rank and Style Scores models, so value investors will likely feel that RKUNY is the better option right now.