ASO vs. PLBY: Which Stock Is the Better Value Option?

ASO PLBY

Investors interested in stocks from the Leisure and Recreation Products sector have probably already heard of Academy Sports and Outdoors, Inc. (ASO - Free Report) and PLBY Group, Inc. (PLBY - 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, Academy Sports and Outdoors, Inc. is sporting a Zacks Rank of #1 (Strong Buy), while PLBY Group, Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ASO likely has seen a stronger improvement to its earnings outlook than PLBY has recently. But this is just one factor that value investors are interested in.

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.

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.

ASO currently has a forward P/E ratio of 8.54, while PLBY has a forward P/E of 571.42. We also note that ASO has a PEG ratio of 2.05. 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. PLBY currently has a PEG ratio of 21.98.

Another notable valuation metric for ASO is its P/B ratio of 2.89. 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, PLBY has a P/B of 6.83.

Based on these metrics and many more, ASO holds a Value grade of A, while PLBY has a Value grade of F.

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

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