Investors interested in stocks from the Internet - Commerce sector have probably already heard of Prosus N.V. Sponsored ADR (PROSY) and MercadoLibre (MELI). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both Prosus N.V. Sponsored ADR and MercadoLibre have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.
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.
PROSY currently has a forward P/E ratio of 3.47, while MELI has a forward P/E of 48.77. We also note that PROSY has a PEG ratio of 0.08. 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 1.15.
Another notable valuation metric for PROSY is its P/B ratio of 5.45. 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, MELI has a P/B of 31.32.
These are just a few of the metrics contributing to PROSY's Value grade of B and MELI's Value grade of C.
Both PROSY and MELI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PROSY is the superior value option right now.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>Prosus N.V. Sponsored ADR (PROSY) : Free Stock Analysis Report
MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
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