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TME or TTGT: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Internet - Content sector have probably already heard of Tencent Music Entertainment Group Sponsored ADR (TME - Free Report) and TechTarget (TTGT - 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Tencent Music Entertainment Group Sponsored ADR is sporting a Zacks Rank of #2 (Buy), while TechTarget has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TME likely has seen a stronger improvement to its earnings outlook than TTGT has recently. 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.
TME currently has a forward P/E ratio of 16.58, while TTGT has a forward P/E of 20.87. We also note that TME has a PEG ratio of 0.78. 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. TTGT currently has a PEG ratio of 6.42.
Another notable valuation metric for TME is its P/B ratio of 2.22. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TTGT has a P/B of 3.89.
Based on these metrics and many more, TME holds a Value grade of B, while TTGT has a Value grade of D.
TME sticks out from TTGT in both our Zacks Rank and Style Scores models, so value investors will likely feel that TME is the better option right now.
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TME or TTGT: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Internet - Content sector have probably already heard of Tencent Music Entertainment Group Sponsored ADR (TME - Free Report) and TechTarget (TTGT - 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Tencent Music Entertainment Group Sponsored ADR is sporting a Zacks Rank of #2 (Buy), while TechTarget has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TME likely has seen a stronger improvement to its earnings outlook than TTGT has recently. 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.
TME currently has a forward P/E ratio of 16.58, while TTGT has a forward P/E of 20.87. We also note that TME has a PEG ratio of 0.78. 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. TTGT currently has a PEG ratio of 6.42.
Another notable valuation metric for TME is its P/B ratio of 2.22. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TTGT has a P/B of 3.89.
Based on these metrics and many more, TME holds a Value grade of B, while TTGT has a Value grade of D.
TME sticks out from TTGT in both our Zacks Rank and Style Scores models, so value investors will likely feel that TME is the better option right now.