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NUS vs. HELE: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Cosmetics sector have probably already heard of Nu Skin Enterprises (NUS - Free Report) and Helen of Troy (HELE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Nu Skin Enterprises has a Zacks Rank of #1 (Strong Buy), while Helen of Troy has a Zacks Rank of #2 (Buy) right now. This means that NUS'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 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 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.

NUS currently has a forward P/E ratio of 16.11, while HELE has a forward P/E of 21.74. We also note that NUS has a PEG ratio of 2.88. 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. HELE currently has a PEG ratio of 3.33.

Another notable valuation metric for NUS is its P/B ratio of 3.15. 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, HELE has a P/B of 4.39.

Based on these metrics and many more, NUS holds a Value grade of B, while HELE has a Value grade of D.

NUS sticks out from HELE in both our Zacks Rank and Style Scores models, so value investors will likely feel that NUS is the better option right now.


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