XELB or GOOS: Which Is the Better Value Stock Right Now?

XELB GOOS

Investors interested in Retail - Apparel and Shoes stocks are likely familiar with XCel Brands (XELB - Free Report) and Canada Goose (GOOS - 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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.

XCel Brands has a Zacks Rank of #2 (Buy), while Canada Goose 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 XELB has an improving earnings outlook. 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.

XELB currently has a forward P/E ratio of 3.63, while GOOS has a forward P/E of 28.90. We also note that XELB has a PEG ratio of 0.36. 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. GOOS currently has a PEG ratio of 1.02.

Another notable valuation metric for XELB is its P/B ratio of 0.27. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, GOOS has a P/B of 13.16.

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

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

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