Core Insights - The article compares Mattel (MAT) and Take-Two Interactive (TTWO) as potential undervalued stocks in the Toys - Games - Hobbies sector [1] - Both companies currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook [1] Valuation Metrics - MAT has a forward P/E ratio of 12.81, while TTWO has a significantly higher forward P/E of 53.46 [2] - MAT's PEG ratio is 1.19, which is lower than TTWO's PEG ratio of 1.65, suggesting MAT may be more reasonably valued relative to its expected earnings growth [2] - MAT's P/B ratio is 3.16 compared to TTWO's P/B of 4.20, further indicating MAT's superior valuation metrics [3] Value Grades - Based on the valuation figures, MAT has a Value grade of A, while TTWO has a Value grade of F, suggesting that MAT is currently the better value option [3]
MAT vs. TTWO: Which Stock Is the Better Value Option?