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JWN vs. SFIX: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Nordstrom (JWN - Free Report) or Stitch Fix (SFIX - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Nordstrom has a Zacks Rank of #2 (Buy), while Stitch Fix has a Zacks Rank of #3 (Hold). This means that JWN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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.

JWN currently has a forward P/E ratio of 16.89, while SFIX has a forward P/E of 200.11. We also note that JWN has a PEG ratio of 2.82. 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 13.34.

Another notable valuation metric for JWN is its P/B ratio of 8.91. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SFIX has a P/B of 8.96.

These are just a few of the metrics contributing to JWN's Value grade of A and SFIX's Value grade of F.

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


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Nordstrom, Inc. (JWN) - free report >>

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