Investors with an interest in Internet – Commerce stocks have likely encountered both Qurate Retail (QRTEA) and Amazon (AMZN). 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Qurate Retail has a Zacks Rank of #2 (Buy), while Amazon has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that QRTEA is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
QRTEA currently has a forward P/E ratio of 5.20, while AMZN has a forward P/E of 96.28. We also note that QRTEA has a PEG ratio of 0.32. 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. AMZN currently has a PEG ratio of 3.19.
Another notable valuation metric for QRTEA is its P/B ratio of 0.87. 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, AMZN has a P/B of 20.93.
These are just a few of the metrics contributing to QRTEA’s Value grade of A and AMZN’s Value grade of C.
QRTEA stands above AMZN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that QRTEA is the superior value option right now.
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Qurate Retail Group, Inc. (QRTEA) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Qurate Retail Group, Inc. (QRTEA) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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