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NCLH vs. ABNB: Which Stock Is the Better Value Option?
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Investors interested in Leisure and Recreation Services stocks are likely familiar with Norwegian Cruise Line (NCLH - Free Report) and Airbnb, Inc. (ABNB - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Norwegian Cruise Line is sporting a Zacks Rank of #1 (Strong Buy), while Airbnb, Inc. 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 NCLH is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
NCLH currently has a forward P/E ratio of 12.43, while ABNB has a forward P/E of 28.83. We also note that NCLH has a PEG ratio of 1.01. 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. ABNB currently has a PEG ratio of 2.22.
Another notable valuation metric for NCLH is its P/B ratio of 7.28. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ABNB has a P/B of 9.72.
These are just a few of the metrics contributing to NCLH's Value grade of A and ABNB's Value grade of C.
NCLH stands above ABNB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NCLH is the superior value option right now.
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NCLH vs. ABNB: Which Stock Is the Better Value Option?
Investors interested in Leisure and Recreation Services stocks are likely familiar with Norwegian Cruise Line (NCLH - Free Report) and Airbnb, Inc. (ABNB - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Norwegian Cruise Line is sporting a Zacks Rank of #1 (Strong Buy), while Airbnb, Inc. 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 NCLH is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
NCLH currently has a forward P/E ratio of 12.43, while ABNB has a forward P/E of 28.83. We also note that NCLH has a PEG ratio of 1.01. 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. ABNB currently has a PEG ratio of 2.22.
Another notable valuation metric for NCLH is its P/B ratio of 7.28. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ABNB has a P/B of 9.72.
These are just a few of the metrics contributing to NCLH's Value grade of A and ABNB's Value grade of C.
NCLH stands above ABNB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NCLH is the superior value option right now.