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

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Investors with an interest in Internet - Commerce stocks have likely encountered both Booking Holdings (BKNG - Free Report) and MONOTARO (MONOY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Booking Holdings and MONOTARO are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BKNG has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

BKNG currently has a forward P/E ratio of 18.85, while MONOY has a forward P/E of 56.76. We also note that BKNG has a PEG ratio of 1.41. 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. MONOY currently has a PEG ratio of 2.64.

Another notable valuation metric for BKNG is its P/B ratio of 15.64. 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, MONOY has a P/B of 22.

Based on these metrics and many more, BKNG holds a Value grade of B, while MONOY has a Value grade of D.

BKNG has seen stronger estimate revision activity and sports more attractive valuation metrics than MONOY, so it seems like value investors will conclude that BKNG is the superior option right now.


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