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HIBB vs. MNSO: Which Stock Is the Better Value Option?

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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Hibbett Sports (HIBB - Free Report) and MINISO Group Holding Limited Unsponsored ADR (MNSO - 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.

Hibbett Sports has a Zacks Rank of #1 (Strong Buy), while MINISO Group Holding Limited Unsponsored ADR has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that HIBB likely has seen a stronger improvement to its earnings outlook than MNSO has recently. But this is only part of the picture for value investors.

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.

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.

HIBB currently has a forward P/E ratio of 10.28, while MNSO has a forward P/E of 24.40. We also note that HIBB has a PEG ratio of 0.58. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MNSO currently has a PEG ratio of 1.15.

Another notable valuation metric for HIBB is its P/B ratio of 3.39. 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, MNSO has a P/B of 5.47.

Based on these metrics and many more, HIBB holds a Value grade of B, while MNSO has a Value grade of C.

HIBB stands above MNSO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HIBB is the superior value option right now.


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Hibbett, Inc. (HIBB) - free report >>

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