Advertisement
Australia markets closed
  • ALL ORDS

    8,050.20
    -23.90 (-0.30%)
     
  • ASX 200

    7,788.10
    -25.50 (-0.33%)
     
  • AUD/USD

    0.6467
    -0.0073 (-1.11%)
     
  • OIL

    85.45
    +0.43 (+0.51%)
     
  • GOLD

    2,360.20
    -12.50 (-0.53%)
     
  • Bitcoin AUD

    103,531.24
    -5,556.39 (-5.09%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • AUD/EUR

    0.6073
    -0.0017 (-0.29%)
     
  • AUD/NZD

    1.0885
    -0.0012 (-0.11%)
     
  • NZX 50

    11,931.32
    -2.99 (-0.03%)
     
  • NASDAQ

    18,003.49
    -304.50 (-1.66%)
     
  • FTSE

    7,995.58
    +71.78 (+0.91%)
     
  • Dow Jones

    37,983.24
    -475.84 (-1.24%)
     
  • DAX

    17,930.32
    -24.16 (-0.13%)
     
  • Hang Seng

    16,721.69
    -373.34 (-2.18%)
     
  • NIKKEI 225

    39,523.55
    +80.92 (+0.21%)
     

PROSY vs. MELI: Which Stock Is the Better Value Option?

Investors interested in stocks from the Internet - Commerce sector have probably already heard of Prosus N.V. Sponsored ADR (PROSY) and MercadoLibre (MELI). 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Both Prosus N.V. Sponsored ADR and MercadoLibre have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.

ADVERTISEMENT

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.

PROSY currently has a forward P/E ratio of 3.47, while MELI has a forward P/E of 48.77. We also note that PROSY has a PEG ratio of 0.08. 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. MELI currently has a PEG ratio of 1.15.

Another notable valuation metric for PROSY is its P/B ratio of 5.45. 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, MELI has a P/B of 31.32.

These are just a few of the metrics contributing to PROSY's Value grade of B and MELI's Value grade of C.

Both PROSY and MELI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PROSY is the superior value option right now.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Prosus N.V. Sponsored ADR (PROSY) : Free Stock Analysis Report

MercadoLibre, Inc. (MELI) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research