Yahoo Finance TME vs. SSTK: Which Stock Should Value Investors Buy Now?
Investors interested in Internet - Content stocks are likely familiar with Tencent Music Entertainment Group Sponsored ADR (TME) and Shutterstock (SSTK). But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Tencent Music Entertainment Group Sponsored ADR has a Zacks Rank of #2 (Buy), while Shutterstock has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TME 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.
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.
TME currently has a forward P/E ratio of 15.46, while SSTK has a forward P/E of 19.59. We also note that TME has a PEG ratio of 0.62. 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. SSTK currently has a PEG ratio of 6.20.
Another notable valuation metric for TME is its P/B ratio of 2.06. 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, SSTK has a P/B of 6.27.
Based on these metrics and many more, TME holds a Value grade of B, while SSTK has a Value grade of C.
TME stands above SSTK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TME is the superior value option right now.
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Tencent Music Entertainment Group Sponsored ADR (TME) : Free Stock Analysis Report
Shutterstock, Inc. (SSTK) : Free Stock Analysis Report
