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BKNG or MONOY: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Internet - Commerce sector might want to consider either Booking Holdings (BKNG - Free Report) or MONOTARO (MONOY - 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Booking Holdings has a Zacks Rank of #2 (Buy), while MONOTARO has a Zacks Rank of #3 (Hold). This means that BKNG's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.

BKNG currently has a forward P/E ratio of 16.36, while MONOY has a forward P/E of 50.22. We also note that BKNG has a PEG ratio of 1.24. 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 2.63.

Another notable valuation metric for BKNG is its P/B ratio of 13.37. 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, MONOY has a P/B of 19.68.

These metrics, and several others, help BKNG earn a Value grade of B, while MONOY has been given a Value grade of F.

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


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