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PSO or DIS: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Media Conglomerates sector have probably already heard of Pearson (PSO - Free Report) and Walt Disney (DIS - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Currently, Pearson has a Zacks Rank of #2 (Buy), while Walt Disney has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PSO likely has seen a stronger improvement to its earnings outlook than DIS has recently. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
PSO currently has a forward P/E ratio of 15.45, while DIS has a forward P/E of 27.59. We also note that PSO has a PEG ratio of 0.87. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DIS currently has a PEG ratio of 2.70.
Another notable valuation metric for PSO is its P/B ratio of 1.39. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DIS has a P/B of 1.97.
These are just a few of the metrics contributing to PSO's Value grade of A and DIS's Value grade of C.
PSO stands above DIS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PSO is the superior value option right now.
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PSO or DIS: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Media Conglomerates sector have probably already heard of Pearson (PSO - Free Report) and Walt Disney (DIS - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Currently, Pearson has a Zacks Rank of #2 (Buy), while Walt Disney has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PSO likely has seen a stronger improvement to its earnings outlook than DIS has recently. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
PSO currently has a forward P/E ratio of 15.45, while DIS has a forward P/E of 27.59. We also note that PSO has a PEG ratio of 0.87. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DIS currently has a PEG ratio of 2.70.
Another notable valuation metric for PSO is its P/B ratio of 1.39. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DIS has a P/B of 1.97.
These are just a few of the metrics contributing to PSO's Value grade of A and DIS's Value grade of C.
PSO stands above DIS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PSO is the superior value option right now.