Back to top

Image: Bigstock

PBH vs. VZIO: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors with an interest in Consumer Products - Discretionary stocks have likely encountered both Prestige Brands (PBH - Free Report) and VIZIO Holding Corp. (VZIO - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Prestige Brands has a Zacks Rank of #2 (Buy), while VIZIO Holding Corp. 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 PBH has an improving earnings outlook. 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.

PBH currently has a forward P/E ratio of 12.23, while VZIO has a forward P/E of 427.20. We also note that PBH has a PEG ratio of 1.53. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. VZIO currently has a PEG ratio of 17.09.

Another notable valuation metric for PBH is its P/B ratio of 1.62. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, VZIO has a P/B of 6.03.

Based on these metrics and many more, PBH holds a Value grade of B, while VZIO has 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Prestige Consumer Healthcare Inc. (PBH) - free report >>

VIZIO Holding Corp. (VZIO) - free report >>

Published in