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AMZN vs. CPNG: Which Stock Is the Better Value Option?

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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 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.

Right now, Amazon is sporting a Zacks Rank of #2 (Buy), while Coupang, Inc. has a Zacks Rank of #3 (Hold). This means that AMZN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

AMZN currently has a forward P/E ratio of 36.28, while CPNG has a forward P/E of 2,028. We also note that AMZN has a PEG ratio of 1.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CPNG currently has a PEG ratio of 2,007.92.

Another notable valuation metric for AMZN is its P/B ratio of 7.39. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CPNG has a P/B of 8.91.

Based on these metrics and many more, AMZN holds a Value grade of B, while CPNG has a Value grade of C.

AMZN sticks out from CPNG in both our Zacks Rank and Style Scores models, so value investors will likely feel that AMZN is the better option right now.


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Amazon.com, Inc. (AMZN) - free report >>

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