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HBI vs. VFC: Which Stock Is the Better Value Option?
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Investors with an interest in Textile - Apparel stocks have likely encountered both HanesBrands (HBI - Free Report) and V.F. (VFC - 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.
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.
Currently, HanesBrands has a Zacks Rank of #1 (Strong Buy), while V.F. has a Zacks Rank of #3 (Hold). This means that HBI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
HBI currently has a forward P/E ratio of 10.74, while VFC has a forward P/E of 55.66. We also note that HBI has a PEG ratio of 3.26. 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. VFC currently has a PEG ratio of 4.74.
Another notable valuation metric for HBI is its P/B ratio of 5.05. 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, VFC has a P/B of 8.16.
These metrics, and several others, help HBI earn a Value grade of B, while VFC has been given a Value grade of D.
HBI stands above VFC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HBI is the superior value option right now.
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HBI vs. VFC: Which Stock Is the Better Value Option?
Investors with an interest in Textile - Apparel stocks have likely encountered both HanesBrands (HBI - Free Report) and V.F. (VFC - 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.
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.
Currently, HanesBrands has a Zacks Rank of #1 (Strong Buy), while V.F. has a Zacks Rank of #3 (Hold). This means that HBI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
HBI currently has a forward P/E ratio of 10.74, while VFC has a forward P/E of 55.66. We also note that HBI has a PEG ratio of 3.26. 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. VFC currently has a PEG ratio of 4.74.
Another notable valuation metric for HBI is its P/B ratio of 5.05. 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, VFC has a P/B of 8.16.
These metrics, and several others, help HBI earn a Value grade of B, while VFC has been given a Value grade of D.
HBI stands above VFC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HBI is the superior value option right now.