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SIG vs. CFRUY: Which Stock Is the Better Value Option?

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Investors interested in Retail - Jewelry stocks are likely familiar with Signet (SIG - Free Report) and Compagnie Financiere Richemont AG (CFRUY - 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.

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

Currently, both Signet and Compagnie Financiere Richemont AG are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. 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.

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.

SIG currently has a forward P/E ratio of 6.86, while CFRUY has a forward P/E of 21.92. We also note that SIG has a PEG ratio of 0.86. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CFRUY currently has a PEG ratio of 1.19.

Another notable valuation metric for SIG is its P/B ratio of 2.58. 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, CFRUY has a P/B of 6.91.

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

Both SIG and CFRUY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SIG is the superior value option right now.


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