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TPR vs. PPRUY: Which Stock Is the Better Value Option?

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Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both Tapestry (TPR - Free Report) and Kering SA (PPRUY - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Tapestry is sporting a Zacks Rank of #2 (Buy), while Kering SA has a Zacks Rank of #5 (Strong Sell). This means that TPR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

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.

TPR currently has a forward P/E ratio of 10.64, while PPRUY has a forward P/E of 17.22. We also note that TPR has a PEG ratio of 0.85. 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. PPRUY currently has a PEG ratio of 3.49.

Another notable valuation metric for TPR is its P/B ratio of 4.53. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PPRUY has a P/B of 4.68.

These metrics, and several others, help TPR earn a Value grade of A, while PPRUY has been given a Value grade of D.

TPR has seen stronger estimate revision activity and sports more attractive valuation metrics than PPRUY, so it seems like value investors will conclude that TPR is the superior option right now.


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Kering SA (PPRUY) - free report >>

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