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

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Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Hibbett (HIBB - Free Report) or Figs (FIGS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Hibbett is sporting a Zacks Rank of #2 (Buy), while Figs has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HIBB 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.

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.

HIBB currently has a forward P/E ratio of 6.01, while FIGS has a forward P/E of 85.20. We also note that HIBB has a PEG ratio of 1.65. 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 39.26.

Another notable valuation metric for HIBB is its P/B ratio of 2.35. 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, FIGS has a P/B of 6.73.

These are just a few of the metrics contributing to HIBB's Value grade of A and FIGS's Value grade of D.

HIBB sticks out from FIGS in both our Zacks Rank and Style Scores models, so value investors will likely feel that HIBB is the better option right now.


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Hibbett, Inc. (HIBB) - free report >>

FIGS, Inc. (FIGS) - free report >>

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