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IDEXY vs. DECK: 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 Industria de Diseno Textil SA (IDEXY - Free Report) and Deckers (DECK - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both Industria de Diseno Textil SA and Deckers 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. However, value investors will care about much more than just this.

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 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.

IDEXY currently has a forward P/E ratio of 21.02, while DECK has a forward P/E of 36.72. We also note that IDEXY has a PEG ratio of 1.62. 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. DECK currently has a PEG ratio of 2.05.

Another notable valuation metric for IDEXY is its P/B ratio of 7.63. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DECK has a P/B of 10.79.

Based on these metrics and many more, IDEXY holds a Value grade of B, while DECK has a Value grade of D.

Both IDEXY and DECK are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that IDEXY is the superior value option right now.


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Deckers Outdoor Corporation (DECK) - free report >>

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