Yahoo Finance DBOEY or NDAQ: Which Is the Better Value Stock Right Now?
Investors interested in Securities and Exchanges stocks are likely familiar with Deutsche Boerse AG (DBOEY) and Nasdaq (NDAQ). But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Deutsche Boerse AG is sporting a Zacks Rank of #2 (Buy), while Nasdaq has a Zacks Rank of #3 (Hold). This means that DBOEY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
DBOEY currently has a forward P/E ratio of 16.48, while NDAQ has a forward P/E of 19.64. We also note that DBOEY has a PEG ratio of 1.23. 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. NDAQ currently has a PEG ratio of 4.42.
Another notable valuation metric for DBOEY is its P/B ratio of 3.48. 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, NDAQ has a P/B of 4.22.
These are just a few of the metrics contributing to DBOEY's Value grade of B and NDAQ's Value grade of D.
DBOEY sticks out from NDAQ in both our Zacks Rank and Style Scores models, so value investors will likely feel that DBOEY is the better option right now.
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
Deutsche Boerse AG (DBOEY) : Free Stock Analysis Report
Nasdaq, Inc. (NDAQ) : Free Stock Analysis Report