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BABA vs. CART: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Internet - Commerce sector might want to consider either Alibaba (BABA - Free Report) or Maplebear (CART - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Alibaba has a Zacks Rank of #1 (Strong Buy), while Maplebear has a Zacks Rank of #3 (Hold). This means that BABA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
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.
BABA currently has a forward P/E ratio of 11.19, while CART has a forward P/E of 37.10. We also note that BABA has a PEG ratio of 0.42. 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. CART currently has a PEG ratio of 1.35.
Another notable valuation metric for BABA is its P/B ratio of 1.77. 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, CART has a P/B of 3.72.
These metrics, and several others, help BABA earn a Value grade of A, while CART has been given a Value grade of C.
BABA stands above CART thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BABA is the superior value option right now.
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BABA vs. CART: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Internet - Commerce sector might want to consider either Alibaba (BABA - Free Report) or Maplebear (CART - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Alibaba has a Zacks Rank of #1 (Strong Buy), while Maplebear has a Zacks Rank of #3 (Hold). This means that BABA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
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.
BABA currently has a forward P/E ratio of 11.19, while CART has a forward P/E of 37.10. We also note that BABA has a PEG ratio of 0.42. 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. CART currently has a PEG ratio of 1.35.
Another notable valuation metric for BABA is its P/B ratio of 1.77. 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, CART has a P/B of 3.72.
These metrics, and several others, help BABA earn a Value grade of A, while CART has been given a Value grade of C.
BABA stands above CART thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BABA is the superior value option right now.