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Investors interested in stocks from the Internet - Commerce sector have probably already heard of Expedia (EXPE) and Global-e Online Ltd. (GLBE). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Expedia and Global-e Online Ltd. are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.
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.
EXPE currently has a forward P/E ratio of 13.23, while GLBE has a forward P/E of 262.94. We also note that EXPE has a PEG ratio of 0.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GLBE currently has a PEG ratio of 6.44.
Another notable valuation metric for EXPE is its P/B ratio of 9.04. 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, GLBE has a P/B of 11.82.
These metrics, and several others, help EXPE earn a Value grade of B, while GLBE has been given a Value grade of F.
Both EXPE and GLBE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EXPE is the superior value option right now.
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Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
Global-e Online Ltd. (GLBE) : Free Stock Analysis Report