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BYD vs. RBLX: Which Stock Should Value Investors Buy Now?

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Investors interested in Gaming stocks are likely familiar with Boyd Gaming (BYD - Free Report) and Roblox (RBLX - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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, Boyd Gaming is sporting a Zacks Rank of #2 (Buy), while Roblox has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BYD likely has seen a stronger improvement to its earnings outlook than RBLX has recently. But this is only part of the picture 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

BYD currently has a forward P/E ratio of 18.47, while RBLX has a forward P/E of 90.77. We also note that BYD has a PEG ratio of 0.93. 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. RBLX currently has a PEG ratio of 79.62.

Another notable valuation metric for BYD is its P/B ratio of 5.47. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, RBLX has a P/B of 78.47.

Based on these metrics and many more, BYD holds a Value grade of B, while RBLX has a Value grade of D.

BYD has seen stronger estimate revision activity and sports more attractive valuation metrics than RBLX, so it seems like value investors will conclude that BYD is the superior option right now.


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