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JD vs. MONOY: Which Stock Is the Better Value Option?

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Investors with an interest in Internet - Commerce stocks have likely encountered both JD.com, Inc. (JD - Free Report) and MONOTARO (MONOY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

JD.com, Inc. and MONOTARO are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that JD likely has seen a stronger improvement to its earnings outlook than MONOY has recently. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

JD currently has a forward P/E ratio of 47.71, while MONOY has a forward P/E of 75.94. We also note that JD has a PEG ratio of 1.08. 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. MONOY currently has a PEG ratio of 4.42.

Another notable valuation metric for JD is its P/B ratio of 6.99. 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, MONOY has a P/B of 27.32.

These are just a few of the metrics contributing to JD's Value grade of B and MONOY's Value grade of D.

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


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