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MNSO vs. FIGS: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of MINISO Group Holding Limited Unsponsored ADR (MNSO - Free Report) and Figs (FIGS - 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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.

MINISO Group Holding Limited Unsponsored ADR has a Zacks Rank of #2 (Buy), while Figs has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MNSO is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

MNSO currently has a forward P/E ratio of 21.19, while FIGS has a forward P/E of 127.69. We also note that MNSO has a PEG ratio of 0.41. 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. FIGS currently has a PEG ratio of 13.66.

Another notable valuation metric for MNSO is its P/B ratio of 4.19. 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, FIGS has a P/B of 4.33.

These are just a few of the metrics contributing to MNSO's Value grade of B and FIGS's Value grade of D.

MNSO is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that MNSO is likely the superior value option right now.


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MINISO Group Holding Limited Unsponsored ADR (MNSO) - free report >>

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