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GIII vs. CROX: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Textile - Apparel stocks have likely encountered both G-III Apparel Group (GIII - Free Report) and Crocs (CROX - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Both G-III Apparel Group and Crocs have a Zacks Rank of # 1 (Strong Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

GIII currently has a forward P/E ratio of 13.87, while CROX has a forward P/E of 72.07. We also note that GIII has a PEG ratio of 0.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CROX currently has a PEG ratio of 4.80.

Another notable valuation metric for GIII is its P/B ratio of 1.64. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CROX has a P/B of 6.70.

These are just a few of the metrics contributing to GIII's Value grade of B and CROX's Value grade of C.

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


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Crocs, Inc. (CROX) - free report >>

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