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SPB or CUYTY: Which Is the Better Value Stock Right Now?

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Investors with an interest in Consumer Products - Discretionary stocks have likely encountered both Spectrum Brands (SPB - Free Report) and Colruyt SA Unsponsored ADR (CUYTY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Spectrum Brands has a Zacks Rank of #2 (Buy), while Colruyt SA Unsponsored ADR has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SPB has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

SPB currently has a forward P/E ratio of 14.97, while CUYTY has a forward P/E of 17.24. We also note that SPB has a PEG ratio of 0.82. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CUYTY currently has a PEG ratio of 7.98.

Another notable valuation metric for SPB is its P/B ratio of 2.26. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CUYTY has a P/B of 3.41.

Based on these metrics and many more, SPB holds a Value grade of A, while CUYTY has a Value grade of C.

SPB stands above CUYTY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SPB is the superior value option right now.


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Spectrum Brands Holdings Inc. (SPB) - free report >>

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