EXPE vs. VIK: Which Stock Is the Better Value Option?

Investors looking for stocks in the Leisure and Recreation Services sector might want to consider either Expedia (EXPE) or Viking Holdings (VIK). But which of these two stocks presents investors with the better value opportunity right now? Let's 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.

Currently, both Expedia and Viking Holdings are holding a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.

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.

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.

EXPE currently has a forward P/E ratio of 12.35, while VIK has a forward P/E of 20.46. We also note that EXPE has a PEG ratio of 0.63. 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. VIK currently has a PEG ratio of 1.25.

Another notable valuation metric for EXPE is its P/B ratio of 11.31. 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, VIK has a P/B of 27.02.

Based on these metrics and many more, EXPE holds a Value grade of B, while VIK has a Value grade of C.

Both EXPE and VIK are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EXPE is the superior value option right now.

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Expedia Group, Inc. (EXPE): Free Stock Analysis Report

Viking Holdings Ltd. (VIK): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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