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KW or Z: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Real Estate - Operations sector have probably already heard of Kennedy-Wilson (KW - Free Report) and Zillow (Z - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Kennedy-Wilson and Zillow are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle 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.
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.
KW currently has a forward P/E ratio of 3.63, while Z has a forward P/E of 44. We also note that KW has a PEG ratio of 0.64. 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. Z currently has a PEG ratio of 2.77.
Another notable valuation metric for KW is its P/B ratio of 1.60. 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, Z has a P/B of 3.20.
Based on these metrics and many more, KW holds a Value grade of B, while Z has a Value grade of F.
Both KW and Z are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KW is the superior value option right now.
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KW or Z: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Real Estate - Operations sector have probably already heard of Kennedy-Wilson (KW - Free Report) and Zillow (Z - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Kennedy-Wilson and Zillow are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle 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.
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.
KW currently has a forward P/E ratio of 3.63, while Z has a forward P/E of 44. We also note that KW has a PEG ratio of 0.64. 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. Z currently has a PEG ratio of 2.77.
Another notable valuation metric for KW is its P/B ratio of 1.60. 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, Z has a P/B of 3.20.
Based on these metrics and many more, KW holds a Value grade of B, while Z has a Value grade of F.
Both KW and Z are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KW is the superior value option right now.