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TPR vs. GOOS: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Tapestry (TPR - Free Report) or Canada Goose (GOOS - 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 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.

Both Tapestry and Canada Goose have a Zacks Rank of # 1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.

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.

TPR currently has a forward P/E ratio of 11.74, while GOOS has a forward P/E of 35.19. We also note that TPR has a PEG ratio of 0.95. 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. GOOS currently has a PEG ratio of 1.14.

Another notable valuation metric for TPR is its P/B ratio of 3.59. 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, GOOS has a P/B of 13.35.

These metrics, and several others, help TPR earn a Value grade of B, while GOOS has been given a Value grade of F.

Both TPR and GOOS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TPR is the superior value option right now.


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Canada Goose Holdings Inc. (GOOS) - free report >>

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