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LYFT or SHOP: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Internet - Services sector might want to consider either Lyft (LYFT - Free Report) or Shopify (SHOP - 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 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, Lyft is sporting a Zacks Rank of #2 (Buy), while Shopify has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that LYFT is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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 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.
LYFT currently has a forward P/E ratio of 14.12, while SHOP has a forward P/E of 77.14. We also note that LYFT has a PEG ratio of 0.68. 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. SHOP currently has a PEG ratio of 3.99.
Another notable valuation metric for LYFT is its P/B ratio of 7.8. 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, SHOP has a P/B of 12.63.
These metrics, and several others, help LYFT earn a Value grade of B, while SHOP has been given a Value grade of F.
LYFT sticks out from SHOP in both our Zacks Rank and Style Scores models, so value investors will likely feel that LYFT is the better option right now.
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LYFT or SHOP: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Internet - Services sector might want to consider either Lyft (LYFT - Free Report) or Shopify (SHOP - 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 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, Lyft is sporting a Zacks Rank of #2 (Buy), while Shopify has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that LYFT is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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 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.
LYFT currently has a forward P/E ratio of 14.12, while SHOP has a forward P/E of 77.14. We also note that LYFT has a PEG ratio of 0.68. 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. SHOP currently has a PEG ratio of 3.99.
Another notable valuation metric for LYFT is its P/B ratio of 7.8. 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, SHOP has a P/B of 12.63.
These metrics, and several others, help LYFT earn a Value grade of B, while SHOP has been given a Value grade of F.
LYFT sticks out from SHOP in both our Zacks Rank and Style Scores models, so value investors will likely feel that LYFT is the better option right now.