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IGT vs. WYNN: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Gaming stocks have likely encountered both International Game Technology (IGT - Free Report) and Wynn Resorts (WYNN - Free Report) . 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

International Game Technology and Wynn Resorts are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that IGT likely has seen a stronger improvement to its earnings outlook than WYNN has recently. But this is just one factor that value investors are interested in.

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.

IGT currently has a forward P/E ratio of 12.07, while WYNN has a forward P/E of 22.11. We also note that IGT has a PEG ratio of 1.21. 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. WYNN currently has a PEG ratio of 2.21.

Another notable valuation metric for IGT is its P/B ratio of 1.01. 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, WYNN has a P/B of 7.52.

These metrics, and several others, help IGT earn a Value grade of A, while WYNN has been given a Value grade of D.

IGT 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 IGT is likely the superior value option right now.


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