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Sportsman's Warehouse Holdings, Inc. (SPWH) - free report >>
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Sportsman's Warehouse Holdings, Inc. (SPWH) - free report >>
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SPWH vs. SFIX: Which Stock Should Value Investors Buy Now?
Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Sportsman's Warehouse (SPWH - Free Report) and Stitch Fix (SFIX - 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.
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.
Currently, both Sportsman's Warehouse and Stitch Fix are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.
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.
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.
SPWH currently has a forward P/E ratio of 8.76, while SFIX has a forward P/E of 169.09. We also note that SPWH has a PEG ratio of 0.88. 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. SFIX currently has a PEG ratio of 11.27.
Another notable valuation metric for SPWH is its P/B ratio of 4.71. 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, SFIX has a P/B of 11.66.
Based on these metrics and many more, SPWH holds a Value grade of A, while SFIX has a Value grade of D.
Both SPWH and SFIX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SPWH is the superior value option right now.