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COTY or EL: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Cosmetics sector have probably already heard of Coty (COTY - Free Report) and Estee Lauder (EL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, both Coty and Estee Lauder are sporting 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 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.
COTY currently has a forward P/E ratio of 32.58, while EL has a forward P/E of 49.74. We also note that COTY has a PEG ratio of 2.21. 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. EL currently has a PEG ratio of 5.42.
Another notable valuation metric for COTY is its P/B ratio of 2.77. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, EL has a P/B of 14.95.
Based on these metrics and many more, COTY holds a Value grade of B, while EL has a Value grade of D.
Both COTY and EL are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that COTY is the superior value option right now.
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COTY or EL: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Cosmetics sector have probably already heard of Coty (COTY - Free Report) and Estee Lauder (EL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, both Coty and Estee Lauder are sporting 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 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.
COTY currently has a forward P/E ratio of 32.58, while EL has a forward P/E of 49.74. We also note that COTY has a PEG ratio of 2.21. 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. EL currently has a PEG ratio of 5.42.
Another notable valuation metric for COTY is its P/B ratio of 2.77. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, EL has a P/B of 14.95.
Based on these metrics and many more, COTY holds a Value grade of B, while EL has a Value grade of D.
Both COTY and EL are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that COTY is the superior value option right now.