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PDD or MELI: Which Is the Better Value Stock Right Now?
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Investors with an interest in Internet - Commerce stocks have likely encountered both PDD Holdings Inc. (PDD - Free Report) and MercadoLibre (MELI - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both PDD Holdings Inc. and MercadoLibre have a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.
PDD currently has a forward P/E ratio of 17.79, while MELI has a forward P/E of 46.16. We also note that PDD has a PEG ratio of 0.39. 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 1.09.
Another notable valuation metric for PDD is its P/B ratio of 7.59. 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, MELI has a P/B of 29.78.
These are just a few of the metrics contributing to PDD's Value grade of B and MELI's Value grade of C.
Both PDD and MELI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PDD is the superior value option right now.
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PDD or MELI: Which Is the Better Value Stock Right Now?
Investors with an interest in Internet - Commerce stocks have likely encountered both PDD Holdings Inc. (PDD - Free Report) and MercadoLibre (MELI - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both PDD Holdings Inc. and MercadoLibre have a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.
PDD currently has a forward P/E ratio of 17.79, while MELI has a forward P/E of 46.16. We also note that PDD has a PEG ratio of 0.39. 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 1.09.
Another notable valuation metric for PDD is its P/B ratio of 7.59. 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, MELI has a P/B of 29.78.
These are just a few of the metrics contributing to PDD's Value grade of B and MELI's Value grade of C.
Both PDD and MELI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PDD is the superior value option right now.