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DKS vs. TSCO: Which Stock Is the Better Value Option?
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Investors interested in Retail - Miscellaneous stocks are likely familiar with Dick's Sporting Goods (DKS - Free Report) and Tractor Supply (TSCO - 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.
Right now, Dick's Sporting Goods is sporting a Zacks Rank of #1 (Strong Buy), while Tractor Supply has a Zacks Rank of #2 (Buy). This means that DKS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
DKS currently has a forward P/E ratio of 12.79, while TSCO has a forward P/E of 24.88. We also note that DKS has a PEG ratio of 1.80. 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. TSCO currently has a PEG ratio of 2.75.
Another notable valuation metric for DKS is its P/B ratio of 3.35. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TSCO has a P/B of 11.31.
These are just a few of the metrics contributing to DKS's Value grade of A and TSCO's Value grade of D.
DKS stands above TSCO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DKS is the superior value option right now.
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DKS vs. TSCO: Which Stock Is the Better Value Option?
Investors interested in Retail - Miscellaneous stocks are likely familiar with Dick's Sporting Goods (DKS - Free Report) and Tractor Supply (TSCO - 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.
Right now, Dick's Sporting Goods is sporting a Zacks Rank of #1 (Strong Buy), while Tractor Supply has a Zacks Rank of #2 (Buy). This means that DKS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
DKS currently has a forward P/E ratio of 12.79, while TSCO has a forward P/E of 24.88. We also note that DKS has a PEG ratio of 1.80. 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. TSCO currently has a PEG ratio of 2.75.
Another notable valuation metric for DKS is its P/B ratio of 3.35. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TSCO has a P/B of 11.31.
These are just a few of the metrics contributing to DKS's Value grade of A and TSCO's Value grade of D.
DKS stands above TSCO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DKS is the superior value option right now.