EXPE vs. CPNG: Which Stock Is the Better Value Option?

Core Viewpoint - Investors in the Internet - Commerce sector should consider Expedia (EXPE) and Coupang, Inc. (CPNG) for potential value opportunities, with a current preference for EXPE due to its stronger valuation metrics and improving earnings outlook [1]. Valuation Metrics - Expedia has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to Coupang, which has a Zacks Rank of 3 (Hold) [3]. - The forward P/E ratio for EXPE is 12.98, significantly lower than CPNG's forward P/E of 64.94, suggesting that EXPE is undervalued relative to its earnings potential [5]. - EXPE's PEG ratio is 0.71, while CPNG's PEG ratio is 64.29, further indicating that EXPE is a better value option when considering expected earnings growth [5]. - The P/B ratio for EXPE is 8.91, compared to CPNG's P/B of 10.44, reinforcing the notion that EXPE offers a more attractive valuation [6]. - Based on these metrics, EXPE has earned a Value grade of B, while CPNG has a Value grade of D, highlighting the relative undervaluation of EXPE [6]. Earnings Outlook - EXPE is currently experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model, positioning it as the superior value option at this time [7].