Investors with an interest in Internet - Content stocks have likely encountered both China Distance (DL) and Yandex (YNDX). 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
China Distance has a Zacks Rank of #2 (Buy), while Yandex has a Zacks Rank of #3 (Hold) right now. This means that DL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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.
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.
DL currently has a forward P/E ratio of 9.15, while YNDX has a forward P/E of 32.45. We also note that DL has a PEG ratio of 0.61. 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. YNDX currently has a PEG ratio of 0.87.
Another notable valuation metric for DL is its P/B ratio of 2.17. 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, YNDX has a P/B of 4.01.
These metrics, and several others, help DL earn a Value grade of A, while YNDX has been given a Value grade of C.
DL has seen stronger estimate revision activity and sports more attractive valuation metrics than YNDX, so it seems like value investors will conclude that DL is the superior option right now.
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China Distance Education Holdings Limited (DL) : Free Stock Analysis Report
Yandex N.V. (YNDX) : Free Stock Analysis Report
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