For a company with an exclamation point in its name, Yahoo! (NASDAQ:YHOO) sure has been quiet lately. But I can't help thinking that's one of its advantages. Furthermore, you should know I haven't always been a Yahoo! bull. Far from it, in fact. Last year, I went through a phase when I thought Yahoo! had fallen and couldn't get up (and that's not too surprising a concept, considering it's an old-schooler at this point). However, recent developments have led me to see Yahoo! in a new light.

First off, you've got to admit Wall Street hasn't been too terribly enamored with Yahoo! lately. Its stock price has been a bit lethargic, to say the least -- I'd blame that on the fact that everybody has been fairly distracted by Google's (NASDAQ:GOOG) search prowess -- and its astronomical stock price. That's fine, though. Sometimes it's better if a company's not getting much attention, as long it's working quietly behind the scenes -- and I think that's exactly what Yahoo!'s been doing, readying itself to capitalize on the next phase of the Internet.

Focus on you
Yahoo! is gearing up to be an important player in Web 2.0. Although some critics dismiss the Web 2.0 movement as mere lip service to a marketing gimmick, given some of the strongest recent trends, I believe there really is something going on in this regard. Web 2.0 focuses on user-generated and socially networked content. And Yahoo! hasn't been slacking in this area.

Yahoo! prides itself on attracting a large and valuable audience for advertisers. And it's planning to capitalize on what it calls a "significant platform shift" that is taking place since the Internet is always on, always fast, and -- thanks to new devices that are hitting the market -- always with users. In its most recent conference call, Yahoo! said that as the largest global Internet network, it's investing in new ways to engage new audiences, while it continues to search for additional revenue opportunities.

Not least important is the highly respected third-party content that Yahoo! carries through its various services, and the user-generated and user-enhanced content. Over the past couple of years, Yahoo! has made several acquisitions and moves that nod to the social, collaborative content that is currently popular on the Web. Think Flickr, Del.icio.us, and mashups. Even though many of Yahoo!'s recent acquisitions have been of small companies, they have also often represented some of the best and brightest when it comes to the Internet's most talented, forward-looking entrepreneurs.

All eyes on Google
Despite the formidable competition Yahoo! faces from Microsoft's (NASDAQ:MSFT) MSN unit and Time Warner's (NYSE:TWX) AOL, Google has obviously been the darling of Wall Street and individual investors alike. And when Google suffered a recent fall from grace, it's no surprise that investors gazed at similar companies with a more jaundiced eye.

Of course, Yahoo! has boded a bit better than MSN's and AOL's parent companies, in terms of stocks. To cut to the chase, if you compare Yahoo! and Google, you see some interesting metrics. Yahoo! currently trades at a trailing P/E of 25, compared with Google's whopping 80. Although Yahoo! outpaces Google's PEG of 1.5 with its PEG of 2.4, it looks a lot more attractive on a price-to-sales basis. Yahoo! has a P/S ratio of 8.6, while Google's P/S ratio is a nosebleed 18.9.

True, it's a mixed bag that shows that these are both growth stocks -- and they're priced accordingly. However, peering forward, if Yahoo! can utilize its formidable user base and many strong relationships to thwart Google's moves into the next generation of Internet content, it stands to reason that it could drastically change the growth picture for both companies.

Go ahead. Disregard Yahoo! and keep crushing on upstarts like Google. I'm willing to bet that Yahoo!'s strengths -- and future opportunities -- have been underestimated on Wall Street. The Yahoo! faithful may well get the last laugh.

Think you're done with the Duel? You're not! Go back and read the other three arguments, and then vote for a winner.

Time Warner is a Motley Fool Stock Advisor selection. Microsoft is a Motley Fool Inside Value pick.

Alyce Lomax does not own shares of any of the companies mentioned. The Fool has a disclosure policy.