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SPB vs. CUYTY: Which Stock Should Value Investors Buy Now?
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Investors interested in Consumer Products - Discretionary stocks are likely familiar with Spectrum Brands (SPB - Free Report) and Colruyt SA Unsponsored ADR (CUYTY - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Spectrum Brands has a Zacks Rank of #2 (Buy), while Colruyt SA Unsponsored ADR has a Zacks Rank of #3 (Hold) right now. This means that SPB'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.
SPB currently has a forward P/E ratio of 13.63, while CUYTY has a forward P/E of 17.59. We also note that SPB has a PEG ratio of 0.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CUYTY currently has a PEG ratio of 12.65.
Another notable valuation metric for SPB is its P/B ratio of 2.06. 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, CUYTY has a P/B of 3.42.
These metrics, and several others, help SPB earn a Value grade of B, while CUYTY has been given a Value grade of C.
SPB is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SPB is likely the superior value option right now.
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SPB vs. CUYTY: Which Stock Should Value Investors Buy Now?
Investors interested in Consumer Products - Discretionary stocks are likely familiar with Spectrum Brands (SPB - Free Report) and Colruyt SA Unsponsored ADR (CUYTY - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Spectrum Brands has a Zacks Rank of #2 (Buy), while Colruyt SA Unsponsored ADR has a Zacks Rank of #3 (Hold) right now. This means that SPB'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.
SPB currently has a forward P/E ratio of 13.63, while CUYTY has a forward P/E of 17.59. We also note that SPB has a PEG ratio of 0.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CUYTY currently has a PEG ratio of 12.65.
Another notable valuation metric for SPB is its P/B ratio of 2.06. 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, CUYTY has a P/B of 3.42.
These metrics, and several others, help SPB earn a Value grade of B, while CUYTY has been given a Value grade of C.
SPB is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SPB is likely the superior value option right now.