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BURBY vs. PPRUY: Which Stock Is the Better Value Option?

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Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both Burberry Group PLC (BURBY - Free Report) and Kering SA (PPRUY - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Burberry Group PLC has a Zacks Rank of #1 (Strong Buy), while Kering SA has a Zacks Rank of #4 (Sell). This means that BURBY'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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

BURBY currently has a forward P/E ratio of 13.25, while PPRUY has a forward P/E of 14.99. We also note that BURBY has a PEG ratio of 0.96. 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. PPRUY currently has a PEG ratio of 2.26.

Another notable valuation metric for BURBY is its P/B ratio of 3.43. 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, PPRUY has a P/B of 3.84.

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

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


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