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AKA vs. PPRUY: Which Stock Is the Better Value Option?

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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with a.k.a. Brands (AKA - Free Report) and Kering SA (PPRUY - 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.

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

Right now, a.k.a. Brands is sporting a Zacks Rank of #2 (Buy), while Kering SA 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 AKA is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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 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.

AKA currently has a forward P/E ratio of 13.96, while PPRUY has a forward P/E of 16.94. We also note that AKA has a PEG ratio of 0.90. 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. PPRUY currently has a PEG ratio of 2.11.

Another notable valuation metric for AKA is its P/B ratio of 0.48. 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, PPRUY has a P/B of 4.89.

These metrics, and several others, help AKA earn a Value grade of B, while PPRUY has been given a Value grade of C.

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


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Kering SA (PPRUY) - free report >>

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