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PBH vs. VZIO: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Consumer Products - Discretionary sector might want to consider either Prestige Brands (PBH - Free Report) or VIZIO Holding Corp. (VZIO - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Prestige Brands and VIZIO Holding Corp. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that PBH likely has seen a stronger improvement to its earnings outlook than VZIO has recently. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
PBH currently has a forward P/E ratio of 13.24, while VZIO has a forward P/E of 453.20. We also note that PBH has a PEG ratio of 1.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VZIO currently has a PEG ratio of 18.13.
Another notable valuation metric for PBH is its P/B ratio of 1.75. 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, VZIO has a P/B of 6.39.
These metrics, and several others, help PBH earn a Value grade of B, while VZIO has been given a Value grade of D.
PBH stands above VZIO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PBH is the superior value option right now.
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PBH vs. VZIO: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Consumer Products - Discretionary sector might want to consider either Prestige Brands (PBH - Free Report) or VIZIO Holding Corp. (VZIO - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Prestige Brands and VIZIO Holding Corp. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that PBH likely has seen a stronger improvement to its earnings outlook than VZIO has recently. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
PBH currently has a forward P/E ratio of 13.24, while VZIO has a forward P/E of 453.20. We also note that PBH has a PEG ratio of 1.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VZIO currently has a PEG ratio of 18.13.
Another notable valuation metric for PBH is its P/B ratio of 1.75. 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, VZIO has a P/B of 6.39.
These metrics, and several others, help PBH earn a Value grade of B, while VZIO has been given a Value grade of D.
PBH stands above VZIO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PBH is the superior value option right now.