JILL vs. GOOS: Which Stock Is the Better Value Option?

JILL GOOS

Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either J.Jill (JILL - Free Report) or Canada Goose (GOOS - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

J.Jill and Canada Goose are both sporting a Zacks Rank of # 2 (Buy) right now. 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 just one factor that value investors are interested in.

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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

JILL currently has a forward P/E ratio of 9.10, while GOOS has a forward P/E of 34.05. We also note that JILL has a PEG ratio of 0.83. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GOOS currently has a PEG ratio of 1.19.

Another notable valuation metric for JILL is its P/B ratio of 1.17. 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, GOOS has a P/B of 18.95.

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

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

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