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PVH Corp. (PVH) - free report >>
LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) - free report >>
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PVH Corp. (PVH) - free report >>
LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) - free report >>
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PVH vs. LVMUY: Which Stock Is the Better Value Option?
Investors interested in Textile - Apparel stocks are likely familiar with PVH (PVH - Free Report) and LVMH-Moet Hennessy Louis Vuitton SA (LVMUY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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, PVH has a Zacks Rank of #2 (Buy), while LVMH-Moet Hennessy Louis Vuitton SA has a Zacks Rank of #5 (Strong Sell). This means that PVH'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 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.
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.
PVH currently has a forward P/E ratio of 7.42, while LVMUY has a forward P/E of 19.95. We also note that PVH has a PEG ratio of 0.56. 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. LVMUY currently has a PEG ratio of 1.50.
Another notable valuation metric for PVH is its P/B ratio of 0.92. 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, LVMUY has a P/B of 5.47.
Based on these metrics and many more, PVH holds a Value grade of A, while LVMUY has a Value grade of F.
PVH has seen stronger estimate revision activity and sports more attractive valuation metrics than LVMUY, so it seems like value investors will conclude that PVH is the superior option right now.