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UBSFY or SCPL: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Gaming sector have probably already heard of UbiSoft Entertainment Inc. (UBSFY - Free Report) and SciPlay . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, UbiSoft Entertainment Inc. has a Zacks Rank of #2 (Buy), while SciPlay has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that UBSFY is likely seeing its earnings outlook improve to a greater extent. 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.

UBSFY currently has a forward P/E ratio of 17.98, while SCPL has a forward P/E of 21.66. We also note that UBSFY has a PEG ratio of 0.42. 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. SCPL currently has a PEG ratio of 3.51.

Another notable valuation metric for UBSFY is its P/B ratio of 2.08. 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, SCPL has a P/B of 4.14.

These are just a few of the metrics contributing to UBSFY's Value grade of A and SCPL's Value grade of C.

UBSFY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that UBSFY is likely the superior value option right now.


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