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BIG vs. BURL: Which Stock Is the Better Value Option?
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Investors interested in Retail - Discount Stores stocks are likely familiar with Big Lots (BIG - Free Report) and Burlington Stores (BURL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Big Lots has a Zacks Rank of #2 (Buy), while Burlington Stores has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BIG has an improving earnings outlook. But this is just one piece of the puzzle 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.
BIG currently has a forward P/E ratio of 10.14, while BURL has a forward P/E of 24.11. We also note that BIG has a PEG ratio of 1.34. 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. BURL currently has a PEG ratio of 1.42.
Another notable valuation metric for BIG is its P/B ratio of 2.15. 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, BURL has a P/B of 35.28.
Based on these metrics and many more, BIG holds a Value grade of A, while BURL has a Value grade of C.
BIG has seen stronger estimate revision activity and sports more attractive valuation metrics than BURL, so it seems like value investors will conclude that BIG is the superior option right now.
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BIG vs. BURL: Which Stock Is the Better Value Option?
Investors interested in Retail - Discount Stores stocks are likely familiar with Big Lots (BIG - Free Report) and Burlington Stores (BURL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Big Lots has a Zacks Rank of #2 (Buy), while Burlington Stores has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BIG has an improving earnings outlook. But this is just one piece of the puzzle 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.
BIG currently has a forward P/E ratio of 10.14, while BURL has a forward P/E of 24.11. We also note that BIG has a PEG ratio of 1.34. 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. BURL currently has a PEG ratio of 1.42.
Another notable valuation metric for BIG is its P/B ratio of 2.15. 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, BURL has a P/B of 35.28.
Based on these metrics and many more, BIG holds a Value grade of A, while BURL has a Value grade of C.
BIG has seen stronger estimate revision activity and sports more attractive valuation metrics than BURL, so it seems like value investors will conclude that BIG is the superior option right now.