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

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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Canada Goose (GOOS - Free Report) and Figs (FIGS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Canada Goose is sporting a Zacks Rank of #2 (Buy), while Figs has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GOOS has an improving earnings outlook. But this is just one piece of the puzzle 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.

GOOS currently has a forward P/E ratio of 13.43, while FIGS has a forward P/E of 66.44. We also note that GOOS has a PEG ratio of 0.49. 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. FIGS currently has a PEG ratio of 30.62.

Another notable valuation metric for GOOS is its P/B ratio of 5.90. 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, FIGS has a P/B of 6.63.

Based on these metrics and many more, GOOS holds a Value grade of A, while FIGS has a Value grade of D.

GOOS has seen stronger estimate revision activity and sports more attractive valuation metrics than FIGS, so it seems like value investors will conclude that GOOS is the superior option right now.


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

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