Which stock is better value: UBSFY or RRR?

Gaming stock investors may have heard of UbiSoft Entertainment Inc. (UBSFY) and Red Rock Resorts. Which of these two firms is superior for cheap stocks? Let's investigate.  

Combining a strong Zacks Rank with a high Value score in our Style Scores system is the greatest way to find exceptional value opportunities. The established Zacks Rank emphasizes earnings projections and revisions, while Style Scores highlight stocks with specific attributes.  

Currently, UbiSoft Entertainment Inc. is ranked #2 (Buy) while Red Rock Resorts is #3 (Hold). This approach favors firms with favorable earnings estimate revisions, so investors should feel confident that UBSFY's profits outlook will improve. One component of the value investor jigsaw.  

Value investors use a variety of traditional numbers and measures to assess if a company's share price is undervalued. Our Value category examines undervalued firms using the P/E ratio, P/S ratio, earnings yield, cash flow per share, and other fundamentals used by value investors for years.  

UBSFY has a 10.41 ahead P/E, while RRR has 31.03. We also observe UBSFY's 0.26 PEG ratio. A company's predicted EPS growth rate is included in the PEG ratio, which is equivalent to the P/E ratio. The PEG ratio for RRR is 3.08.

Another valuation metric for UBSFY is its 1.57 P/B ratio. Investors compare a stock's market value to its book value (total assets minus total liabilities) using the P/B ratio. In contrast, RRR has 25.78 P/B.

A few metrics contribute to UBSFY's A Value grade and RRR's C Value grade.  

UBSFY's increasing earnings outlook makes it stand out in our Zacks Rank model. Based on the valuation parameters above, UBSFY may be the best value pick.  

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