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SPB or VZIO: 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 VIZIO Holding Corp. (VZIO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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 VIZIO Holding Corp. 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 factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

SPB currently has a forward P/E ratio of 17.83, while VZIO has a forward P/E of 85.63. We also note that SPB has a PEG ratio of 0.58. 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. VZIO currently has a PEG ratio of 3.42.

Another notable valuation metric for SPB is its P/B ratio of 1.09. 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, VZIO has a P/B of 3.20.

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

SPB stands above VZIO 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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