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PRTY or UNICY: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Consumer Products - Discretionary sector might want to consider either Party City or UNICHARM CORP (UNICY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Party City has a Zacks Rank of #2 (Buy), while UNICHARM CORP has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PRTY has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

PRTY currently has a forward P/E ratio of 4.34, while UNICY has a forward P/E of 32.21. We also note that PRTY has a PEG ratio of 0.29. 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. UNICY currently has a PEG ratio of 3.58.

Another notable valuation metric for PRTY is its P/B ratio of 0.67. 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, UNICY has a P/B of 4.08.

Based on these metrics and many more, PRTY holds a Value grade of A, while UNICY has a Value grade of D.

PRTY stands above UNICY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PRTY is the superior value option right now.


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