EXPE or VIK: Which Stock Offers Greater Value at This Moment?

Comparing Expedia and Viking Holdings: Which Stock Offers Better Value?

For those interested in the Leisure and Recreation Services industry, Expedia (EXPE) and Viking Holdings (VIK) are likely already on your radar. But which of these two companies currently presents a more attractive opportunity for value-focused investors? Let’s dive into the details to find out.

Investors use various strategies to uncover value stocks. One effective approach combines a high score in the Value category of our Style Scores system with a favorable Zacks Rank. The Zacks Rank prioritizes positive changes in earnings estimates, while the Style Scores highlight stocks with desirable characteristics.

At present, Expedia holds a Zacks Rank of #1 (Strong Buy), whereas Viking Holdings is rated at #2 (Buy). The Zacks Rank rewards companies that have recently experienced upward revisions in their earnings forecasts, suggesting that EXPE is showing signs of improving profitability. However, this is just one aspect to consider for value investors.

Value-oriented investors also pay close attention to established valuation metrics that help determine if a stock is trading below its intrinsic worth.

Our Value category identifies undervalued stocks by examining several important indicators, such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, earnings yield, cash flow per share, and other key financial measures that have long guided value investing decisions.

Currently, EXPE has a forward P/E ratio of 13.14, while VIK stands at 21.72. Additionally, EXPE’s PEG ratio is 0.67, which, unlike the P/E ratio, also factors in projected earnings growth. In comparison, VIK’s PEG ratio is 1.33.

Another important metric is the price-to-book (P/B) ratio. EXPE’s P/B ratio is 12.1, comparing its market value to its book value (assets minus liabilities). VIK’s P/B ratio is notably higher at 28.52.

These and other metrics contribute to EXPE receiving a Value grade of B, while VIK earns a C in the same category.

Given EXPE’s stronger earnings estimate revisions and more appealing valuation figures, value investors may find EXPE to be the more compelling choice at this time.

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