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NUS vs. IPAR: Which Stock Is the Better Value Option?
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Investors with an interest in Cosmetics stocks have likely encountered both Nu Skin Enterprises (NUS - Free Report) and Inter Parfums (IPAR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Nu Skin Enterprises and Inter Parfums have a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.
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.
NUS currently has a forward P/E ratio of 14.97, while IPAR has a forward P/E of 41.15. We also note that NUS has a PEG ratio of 1.37. 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. IPAR currently has a PEG ratio of 3.36.
Another notable valuation metric for NUS is its P/B ratio of 4.15. 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, IPAR has a P/B of 4.17.
These metrics, and several others, help NUS earn a Value grade of A, while IPAR has been given a Value grade of D.
Both NUS and IPAR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NUS is the superior value option right now.
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NUS vs. IPAR: Which Stock Is the Better Value Option?
Investors with an interest in Cosmetics stocks have likely encountered both Nu Skin Enterprises (NUS - Free Report) and Inter Parfums (IPAR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Nu Skin Enterprises and Inter Parfums have a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.
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.
NUS currently has a forward P/E ratio of 14.97, while IPAR has a forward P/E of 41.15. We also note that NUS has a PEG ratio of 1.37. 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. IPAR currently has a PEG ratio of 3.36.
Another notable valuation metric for NUS is its P/B ratio of 4.15. 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, IPAR has a P/B of 4.17.
These metrics, and several others, help NUS earn a Value grade of A, while IPAR has been given a Value grade of D.
Both NUS and IPAR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NUS is the superior value option right now.