ZLNDY or AMZN: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Internet - Commerce sector have probably already heard of Zalando (ZLNDY) and Amazon (AMZN). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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, Zalando is sporting a Zacks Rank of #2 (Buy), while Amazon has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ZLNDY likely has seen a stronger improvement to its earnings outlook than AMZN 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ZLNDY currently has a forward P/E ratio of 62.86, while AMZN has a forward P/E of 75.93. We also note that ZLNDY has a PEG ratio of 3.47. 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. AMZN currently has a PEG ratio of 4.19.
Another notable valuation metric for ZLNDY is its P/B ratio of 5.14. 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, AMZN has a P/B of 7.21.
Based on these metrics and many more, ZLNDY holds a Value grade of B, while AMZN has a Value grade of C.
ZLNDY 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 ZLNDY is likely the superior value option right now.
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Zalando (ZLNDY) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
