TRIP vs. EBAY: Which Stock Is the Better Value Option?

Investors interested in Internet - Commerce stocks are likely familiar with TripAdvisor (TRIP) and eBay (EBAY). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.TripAdvisor and eBay are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that TRIP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 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.TRIP currently has a forward P/E ratio of 10.71, while EBAY has a forward P/E of 16.55. We also note that TRIP has a PEG ratio of 0.97. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EBAY currently has a PEG ratio of 1.76.Another notable valuation metric for TRIP is its P/B ratio of 2.86. 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, EBAY has a P/B of 8.67.These are just a few of the metrics contributing to TRIP's Value grade of A and EBAY's Value grade of D.TRIP stands above EBAY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TRIP is the superior value option right now.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 TripAdvisor, Inc. (TRIP): Free Stock Analysis Report eBay Inc. (EBAY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks