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FRG or CHWY: Which Is the Better Value Stock Right Now?
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Investors interested in Consumer Products - Staples stocks are likely familiar with Franchise Group and Chewy (CHWY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Franchise Group and Chewy are both sporting a Zacks Rank of # 1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
FRG currently has a forward P/E ratio of 9.92, while CHWY has a forward P/E of 320.60. We also note that FRG has a PEG ratio of 0.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CHWY currently has a PEG ratio of 16.03.
Another notable valuation metric for FRG is its P/B ratio of 2.71. 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, CHWY has a P/B of 102.04.
These are just a few of the metrics contributing to FRG's Value grade of B and CHWY's Value grade of F.
Both FRG and CHWY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FRG is the superior value option right now.
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FRG or CHWY: Which Is the Better Value Stock Right Now?
Investors interested in Consumer Products - Staples stocks are likely familiar with Franchise Group and Chewy (CHWY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Franchise Group and Chewy are both sporting a Zacks Rank of # 1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
FRG currently has a forward P/E ratio of 9.92, while CHWY has a forward P/E of 320.60. We also note that FRG has a PEG ratio of 0.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CHWY currently has a PEG ratio of 16.03.
Another notable valuation metric for FRG is its P/B ratio of 2.71. 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, CHWY has a P/B of 102.04.
These are just a few of the metrics contributing to FRG's Value grade of B and CHWY's Value grade of F.
Both FRG and CHWY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FRG is the superior value option right now.