Investors with an interest in Internet - Content stocks have likely encountered both DHI Group (DHX) and Weibo Corporation (WB). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, DHI Group is sporting a Zacks Rank of #2 (Buy), while Weibo Corporation has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that DHX likely has seen a stronger improvement to its earnings outlook than WB has recently. However, value investors will care about much more than just this.
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.
DHX currently has a forward P/E ratio of 13.37, while WB has a forward P/E of 15.19. We also note that DHX has a PEG ratio of 0.67. 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. WB currently has a PEG ratio of 0.72.
Another notable valuation metric for DHX is its P/B ratio of 1.26. 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, WB has a P/B of 4.91.
These are just a few of the metrics contributing to DHX's Value grade of A and WB's Value grade of D.
DHX has seen stronger estimate revision activity and sports more attractive valuation metrics than WB, so it seems like value investors will conclude that DHX is the superior option right now.
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DHI Group, Inc. (DHX) : Free Stock Analysis Report
Weibo Corporation (WB) : Free Stock Analysis Report
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