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

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Investors with an interest in Internet - Commerce stocks have likely encountered both Qurate Retail (QRTEA - 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.

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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Qurate Retail and MONOTARO are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that QRTEA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

QRTEA currently has a forward P/E ratio of 2.89, while MONOY has a forward P/E of 43.68. We also note that QRTEA has a PEG ratio of 0.32. 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. MONOY currently has a PEG ratio of 2.29.

Another notable valuation metric for QRTEA is its P/B ratio of 0.51. 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 17.12.

These are just a few of the metrics contributing to QRTEA's Value grade of A and MONOY's Value grade of F.

QRTEA stands above MONOY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that QRTEA is the superior value option right now.


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