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SIG vs. CFRUY: Which Stock Is the Better Value Option?

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Investors interested in Retail - Jewelry stocks are likely familiar with Signet (SIG - Free Report) and Compagnie Financiere Richemont AG (CFRUY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Signet is sporting a Zacks Rank of #1 (Strong Buy), while Compagnie Financiere Richemont AG has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that SIG likely has seen a stronger improvement to its earnings outlook than CFRUY has recently. However, value investors will care about much more than just this.

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.

SIG currently has a forward P/E ratio of 5.60, while CFRUY has a forward P/E of 19.39. We also note that SIG has a PEG ratio of 0.70. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CFRUY currently has a PEG ratio of 1.02.

Another notable valuation metric for SIG is its P/B ratio of 2.24. 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, CFRUY has a P/B of 5.73.

These metrics, and several others, help SIG earn a Value grade of B, while CFRUY has been given a Value grade of C.

SIG sticks out from CFRUY in both our Zacks Rank and Style Scores models, so value investors will likely feel that SIG is the better option right now.


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