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DKS vs. RGS: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Retail - Miscellaneous sector have probably already heard of Dick's Sporting Goods (DKS - Free Report) and Regis (RGS - 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.

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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, both Dick's Sporting Goods and Regis 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 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.

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.

DKS currently has a forward P/E ratio of 10.77, while RGS has a forward P/E of 31.35. We also note that DKS has a PEG ratio of 1.54. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RGS currently has a PEG ratio of 3.48.

Another notable valuation metric for DKS is its P/B ratio of 1.77. 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, RGS has a P/B of 1.81.

These are just a few of the metrics contributing to DKS's Value grade of A and RGS's Value grade of C.

Both DKS and RGS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DKS is the superior value option right now.


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Regis Corporation (RGS) - free report >>

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