NUS or HELE: Which Is the Better Value Stock Right Now?

HELE NUS

Investors looking for stocks in the Cosmetics sector might want to consider either Nu Skin Enterprises (NUS - Free Report) or Helen of Troy (HELE - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 Nu Skin Enterprises and Helen of Troy are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.

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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

NUS currently has a forward P/E ratio of 16.36, while HELE has a forward P/E of 19.71. We also note that NUS has a PEG ratio of 2.01. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HELE currently has a PEG ratio of 2.03.

Another notable valuation metric for NUS is its P/B ratio of 3.81. 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, HELE has a P/B of 4.63.

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

Both NUS and HELE 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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