Yahoo Finance TRVG vs. TTD: Which Stock Is the Better Value Option?
Investors with an interest in Internet - Services stocks have likely encountered both Trivago N.V. ADS (TRVG) and The Trade Desk (TTD). 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Trivago N.V. ADS is sporting a Zacks Rank of #2 (Buy), while The Trade Desk has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TRVG likely has seen a stronger improvement to its earnings outlook than TTD has recently. But this is just one factor that value investors are interested in.
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 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.
TRVG currently has a forward P/E ratio of 8, while TTD has a forward P/E of 42.07. We also note that TRVG has a PEG ratio of 0.55. 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. TTD currently has a PEG ratio of 1.75.
Another notable valuation metric for TRVG is its P/B ratio of 1.05. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TTD has a P/B of 11.94.
Based on these metrics and many more, TRVG holds a Value grade of A, while TTD has a Value grade of D.
TRVG 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 TRVG is likely the superior value option right now.
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Trivago N.V. ADS (TRVG) : Free Stock Analysis Report
The Trade Desk (TTD) : Free Stock Analysis Report
