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OLLI vs. GO: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Consumer Products - Staples sector have probably already heard of Ollie's Bargain Outlet (OLLI - Free Report) and Grocery Outlet Holding Corp. (GO - 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 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.
Ollie's Bargain Outlet has a Zacks Rank of #2 (Buy), while Grocery Outlet Holding Corp. has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OLLI is likely seeing its earnings outlook improve to a greater extent. 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
OLLI currently has a forward P/E ratio of 31.14, while GO has a forward P/E of 39.98. We also note that OLLI has a PEG ratio of 1.81. 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. GO currently has a PEG ratio of 3.37.
Another notable valuation metric for OLLI is its P/B ratio of 2.82. 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, GO has a P/B of 3.63.
These metrics, and several others, help OLLI earn a Value grade of B, while GO has been given a Value grade of C.
OLLI stands above GO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that OLLI is the superior value option right now.
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OLLI vs. GO: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Consumer Products - Staples sector have probably already heard of Ollie's Bargain Outlet (OLLI - Free Report) and Grocery Outlet Holding Corp. (GO - 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 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.
Ollie's Bargain Outlet has a Zacks Rank of #2 (Buy), while Grocery Outlet Holding Corp. has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OLLI is likely seeing its earnings outlook improve to a greater extent. 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
OLLI currently has a forward P/E ratio of 31.14, while GO has a forward P/E of 39.98. We also note that OLLI has a PEG ratio of 1.81. 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. GO currently has a PEG ratio of 3.37.
Another notable valuation metric for OLLI is its P/B ratio of 2.82. 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, GO has a P/B of 3.63.
These metrics, and several others, help OLLI earn a Value grade of B, while GO has been given a Value grade of C.
OLLI stands above GO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that OLLI is the superior value option right now.