Investors looking for stocks in the Internet - Commerce sector might want to consider either Expedia (EXPE) or Coupang, Inc. (CPNG). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, Expedia has a Zacks Rank of #2 (Buy), while Coupang, Inc. has a Zacks Rank of #3 (Hold). This means that EXPE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

EXPE currently has a forward P/E ratio of 12.98, while CPNG has a forward P/E of 64.94. We also note that EXPE has a PEG ratio of 0.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CPNG currently has a PEG ratio of 64.29.

Another notable valuation metric for EXPE is its P/B ratio of 8.91. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CPNG has a P/B of 10.44.

These metrics, and several others, help EXPE earn a Value grade of B, while CPNG has been given a Value grade of D.

EXPE is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that EXPE is likely the superior value option right now.

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Expedia Group, Inc. (EXPE) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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