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PVH vs. LVMUY: Which Stock Is the Better Value Option?

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Investors with an interest in Textile - Apparel stocks have likely encountered both PVH (PVH - Free Report) and LVMH-Moet Hennessy Louis Vuitton SA (LVMUY - 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 PVH and LVMH-Moet Hennessy Louis Vuitton SA 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 just one factor that value investors are interested in.

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.

PVH currently has a forward P/E ratio of 8.98, while LVMUY has a forward P/E of 25.83. We also note that PVH has a PEG ratio of 0.56. 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. LVMUY currently has a PEG ratio of 1.77.

Another notable valuation metric for PVH is its P/B ratio of 1.12. 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, LVMUY has a P/B of 8.01.

Based on these metrics and many more, PVH holds a Value grade of A, while LVMUY has a Value grade of D.

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


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