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DL vs. YNDX: Which Stock Should Value Investors Buy Now?

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Investors interested in Internet - Content stocks are likely familiar with China Distance and Yandex (YNDX - 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.

Currently, China Distance has a Zacks Rank of #2 (Buy), while Yandex 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 DL 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.

DL currently has a forward P/E ratio of 9.09, while YNDX has a forward P/E of 31.47. We also note that DL has a PEG ratio of 0.61. 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. YNDX currently has a PEG ratio of 0.84.

Another notable valuation metric for DL is its P/B ratio of 2.16. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, YNDX has a P/B of 3.98.

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

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


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