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TRIP vs. CPNG: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Internet - Commerce sector might want to consider either TripAdvisor (TRIP - Free Report) or Coupang, Inc. (CPNG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
TripAdvisor has a Zacks Rank of #2 (Buy), while Coupang, Inc. has a Zacks Rank of #4 (Sell) right now. This means that TRIP'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 also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
TRIP currently has a forward P/E ratio of 12.51, while CPNG has a forward P/E of 219.73. We also note that TRIP has a PEG ratio of 3.13. 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. CPNG currently has a PEG ratio of 217.55.
Another notable valuation metric for TRIP is its P/B ratio of 2.27. 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, CPNG has a P/B of 10.34.
These metrics, and several others, help TRIP earn a Value grade of B, while CPNG has been given a Value grade of D.
TRIP is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TRIP is likely the superior value option right now.
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TRIP vs. CPNG: Which Stock Is the Better Value Option?
Investors looking for stocks in the Internet - Commerce sector might want to consider either TripAdvisor (TRIP - Free Report) or Coupang, Inc. (CPNG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
TripAdvisor has a Zacks Rank of #2 (Buy), while Coupang, Inc. has a Zacks Rank of #4 (Sell) right now. This means that TRIP'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 also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
TRIP currently has a forward P/E ratio of 12.51, while CPNG has a forward P/E of 219.73. We also note that TRIP has a PEG ratio of 3.13. 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. CPNG currently has a PEG ratio of 217.55.
Another notable valuation metric for TRIP is its P/B ratio of 2.27. 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, CPNG has a P/B of 10.34.
These metrics, and several others, help TRIP earn a Value grade of B, while CPNG has been given a Value grade of D.
TRIP is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TRIP is likely the superior value option right now.