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AMZN vs. CPNG: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Internet - Commerce stocks have likely encountered both Amazon (AMZN - Free Report) and Coupang, Inc. (CPNG - 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.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Amazon has a Zacks Rank of #2 (Buy), while Coupang, Inc. has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AMZN has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
AMZN currently has a forward P/E ratio of 42.57, while CPNG has a forward P/E of 864.80. We also note that AMZN has a PEG ratio of 1.44. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CPNG currently has a PEG ratio of 46.20.
Another notable valuation metric for AMZN is its P/B ratio of 9.37. 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, CPNG has a P/B of 9.50.
Based on these metrics and many more, AMZN holds a Value grade of B, while CPNG has a Value grade of C.
AMZN 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 AMZN is likely the superior value option right now.
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AMZN vs. CPNG: Which Stock Should Value Investors Buy Now?
Investors with an interest in Internet - Commerce stocks have likely encountered both Amazon (AMZN - Free Report) and Coupang, Inc. (CPNG - 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.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Amazon has a Zacks Rank of #2 (Buy), while Coupang, Inc. has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AMZN has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
AMZN currently has a forward P/E ratio of 42.57, while CPNG has a forward P/E of 864.80. We also note that AMZN has a PEG ratio of 1.44. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CPNG currently has a PEG ratio of 46.20.
Another notable valuation metric for AMZN is its P/B ratio of 9.37. 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, CPNG has a P/B of 9.50.
Based on these metrics and many more, AMZN holds a Value grade of B, while CPNG has a Value grade of C.
AMZN 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 AMZN is likely the superior value option right now.