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

YETI ASO

Investors interested in Leisure and Recreation Products stocks are likely familiar with Academy Sports and Outdoors, Inc. (ASO - Free Report) and Yeti (YETI - 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 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.

Academy Sports and Outdoors, Inc. has a Zacks Rank of #2 (Buy), while Yeti has a Zacks Rank of #4 (Sell) right now. This means that ASO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

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 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.

ASO currently has a forward P/E ratio of 5.54, while YETI has a forward P/E of 21.10. We also note that ASO has a PEG ratio of 0.37. 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. YETI currently has a PEG ratio of 1.19.

Another notable valuation metric for ASO is its P/B ratio of 2.32. 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, YETI has a P/B of 10.53.

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

ASO stands above YETI 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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