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EBAY vs. BKNG: Which Stock Is the Better Value Option?

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Investors with an interest in Internet - Commerce stocks have likely encountered both eBay (EBAY - Free Report) and Booking Holdings (BKNG - 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, eBay is sporting a Zacks Rank of #2 (Buy), while Booking Holdings has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EBAY is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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 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.

EBAY currently has a forward P/E ratio of 14.88, while BKNG has a forward P/E of 19.10. We also note that EBAY has a PEG ratio of 1.57. 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. BKNG currently has a PEG ratio of 1.58.

Another notable valuation metric for EBAY is its P/B ratio of 8.34. 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, BKNG has a P/B of 12.31.

These are just a few of the metrics contributing to EBAY's Value grade of A and BKNG's Value grade of C.

EBAY sticks out from BKNG in both our Zacks Rank and Style Scores models, so value investors will likely feel that EBAY is the better option right now.


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