YELP vs. RELX: Which Stock Should Value Investors Buy Now?

Investors with an interest in Internet - Content stocks have likely encountered both Yelp (YELP) and RELX PLC (RELX). 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.Right now, Yelp is sporting a Zacks Rank of #2 (Buy), while RELX PLC has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that YELP likely has seen a stronger improvement to its earnings outlook than RELX has recently. But this is only part of the picture for value investors.Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.YELP currently has a forward P/E ratio of 16.41, while RELX has a forward P/E of 30.45. We also note that YELP has a PEG ratio of 0.82. 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. RELX currently has a PEG ratio of 3.38.Another notable valuation metric for YELP is its P/B ratio of 3.1. 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, RELX has a P/B of 32.45.These are just a few of the metrics contributing to YELP's Value grade of A and RELX's Value grade of D.YELP stands above RELX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that YELP is the superior value option right now.Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free 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 Yelp Inc. (YELP): Free Stock Analysis Report RELX PLC (RELX): 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