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KW or Z: Which Is the Better Value Stock Right Now?
KWKennedy Wilson(KW) ZACKS·2024-10-09 16:48

Core Viewpoint - Kennedy-Wilson (KW) and Zillow (Z) are both considered by investors in the Real Estate - Operations sector, with a focus on determining which stock is more attractive for value investors [1] Group 1: Company Rankings and Metrics - Both KW and Z currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook for both companies [3] - The Style Score Value grade incorporates key fundamental metrics such as P/E ratio, P/S ratio, earnings yield, and cash flow per share, which are essential for value investors [4] Group 2: Valuation Comparisons - KW has a forward P/E ratio of 3.63, significantly lower than Z's forward P/E of 44, suggesting that KW may be undervalued [5] - KW's PEG ratio is 0.64, while Z's PEG ratio is 2.77, indicating that KW has a more favorable valuation relative to its expected earnings growth [5] - KW's P/B ratio stands at 1.60 compared to Z's P/B of 3.20, further supporting the argument that KW is the superior value option based on these metrics [6] Group 3: Overall Assessment - KW holds a Value grade of B, while Z has a Value grade of F, reinforcing the conclusion that KW is currently the more attractive investment for value investors [6]