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WB vs. ABNB: Which Stock Is the Better Value Option?
Investors looking for stocks in the Internet - Content sector might want to consider either Weibo Corporation (WB - Free Report) or Airbnb, Inc. (ABNB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both Weibo Corporation and Airbnb, Inc. 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. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
WB currently has a forward P/E ratio of 8.47, while ABNB has a forward P/E of 34.54. We also note that WB has a PEG ratio of 0.73. 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. ABNB currently has a PEG ratio of 1.85.
Another notable valuation metric for WB is its P/B ratio of 1.36. 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, ABNB has a P/B of 13.23.
Based on these metrics and many more, WB holds a Value grade of B, while ABNB has a Value grade of C.
Both WB and ABNB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that WB is the superior value option right now.