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HIBB vs. DKS: Which Stock Is the Better Value Option?

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Investors interested in Retail - Miscellaneous stocks are likely familiar with Hibbett Sports (HIBB - Free Report) and Dick's Sporting Goods (DKS - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, both Hibbett Sports and Dick's Sporting Goods are sporting a Zacks Rank of # 1 (Strong Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture 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.

HIBB currently has a forward P/E ratio of 11.09, while DKS has a forward P/E of 12.79. We also note that HIBB has a PEG ratio of 0.91. 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. DKS currently has a PEG ratio of 1.98.

Another notable valuation metric for HIBB is its P/B ratio of 1.43. 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, DKS has a P/B of 2.36.

These metrics, and several others, help HIBB earn a Value grade of A, while DKS has been given a Value grade of C.

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


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DICK'S Sporting Goods, Inc. (DKS) - free report >>

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