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Gildan Activewear, Inc. (GIL) - free report >>
LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) - free report >>
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Gildan Activewear, Inc. (GIL) - free report >>
LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) - free report >>
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GIL vs. LVMUY: Which Stock Is the Better Value Option?
Investors with an interest in Textile - Apparel stocks have likely encountered both Gildan Activewear (GIL - Free Report) and LVMHMoet Hennessy Louis Vuitton SA (LVMUY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Gildan Activewear has a Zacks Rank of #1 (Strong Buy), while LVMHMoet Hennessy Louis Vuitton SA has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GIL is likely seeing its earnings outlook improve to a greater extent. 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.
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.
GIL currently has a forward P/E ratio of 8.75, while LVMUY has a forward P/E of 20.70. We also note that GIL has a PEG ratio of 0.97. 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. LVMUY currently has a PEG ratio of 1.41.
Another notable valuation metric for GIL is its P/B ratio of 2.70. 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, LVMUY has a P/B of 5.33.
These metrics, and several others, help GIL earn a Value grade of B, while LVMUY has been given a Value grade of D.
GIL 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 GIL is likely the superior value option right now.