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SKX vs. NKE: Which Stock Is the Better Value Option?
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Investors interested in Shoes and Retail Apparel stocks are likely familiar with Skechers (SKX - Free Report) and Nike (NKE - 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.
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.
Both Skechers and Nike have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
SKX currently has a forward P/E ratio of 17.42, while NKE has a forward P/E of 30.87. We also note that SKX has a PEG ratio of 0.64. 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. NKE currently has a PEG ratio of 1.92.
Another notable valuation metric for SKX is its P/B ratio of 2.14. 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, NKE has a P/B of 12.59.
Based on these metrics and many more, SKX holds a Value grade of B, while NKE has a Value grade of D.
Both SKX and NKE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SKX is the superior value option right now.
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SKX vs. NKE: Which Stock Is the Better Value Option?
Investors interested in Shoes and Retail Apparel stocks are likely familiar with Skechers (SKX - Free Report) and Nike (NKE - 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.
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.
Both Skechers and Nike have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
SKX currently has a forward P/E ratio of 17.42, while NKE has a forward P/E of 30.87. We also note that SKX has a PEG ratio of 0.64. 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. NKE currently has a PEG ratio of 1.92.
Another notable valuation metric for SKX is its P/B ratio of 2.14. 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, NKE has a P/B of 12.59.
Based on these metrics and many more, SKX holds a Value grade of B, while NKE has a Value grade of D.
Both SKX and NKE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SKX is the superior value option right now.