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ZUMZ 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 Zumiez (ZUMZ - Free Report) or Stitch Fix (SFIX - 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.
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.
Right now, Zumiez is sporting a Zacks Rank of #2 (Buy), while Stitch Fix has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ZUMZ likely has seen a stronger improvement to its earnings outlook than SFIX has recently. 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 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.
ZUMZ currently has a forward P/E ratio of 12.14, while SFIX has a forward P/E of 112.41. We also note that ZUMZ has a PEG ratio of 0.90. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SFIX currently has a PEG ratio of 5.
Another notable valuation metric for ZUMZ is its P/B ratio of 1.43. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SFIX has a P/B of 6.95.
These are just a few of the metrics contributing to ZUMZ's Value grade of A and SFIX's Value grade of D.
ZUMZ has seen stronger estimate revision activity and sports more attractive valuation metrics than SFIX, so it seems like value investors will conclude that ZUMZ is the superior option right now.
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ZUMZ vs. SFIX: Which Stock Is the Better Value Option?
Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Zumiez (ZUMZ - Free Report) or Stitch Fix (SFIX - 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.
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.
Right now, Zumiez is sporting a Zacks Rank of #2 (Buy), while Stitch Fix has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ZUMZ likely has seen a stronger improvement to its earnings outlook than SFIX has recently. 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 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.
ZUMZ currently has a forward P/E ratio of 12.14, while SFIX has a forward P/E of 112.41. We also note that ZUMZ has a PEG ratio of 0.90. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SFIX currently has a PEG ratio of 5.
Another notable valuation metric for ZUMZ is its P/B ratio of 1.43. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SFIX has a P/B of 6.95.
These are just a few of the metrics contributing to ZUMZ's Value grade of A and SFIX's Value grade of D.
ZUMZ has seen stronger estimate revision activity and sports more attractive valuation metrics than SFIX, so it seems like value investors will conclude that ZUMZ is the superior option right now.