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MAT or HAS: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Toys - Games - Hobbies sector have probably already heard of Mattel (MAT - Free Report) and Hasbro (HAS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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, Mattel has a Zacks Rank of #2 (Buy), while Hasbro has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that MAT likely has seen a stronger improvement to its earnings outlook than HAS has recently. But this is just one piece of the puzzle 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 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.

MAT currently has a forward P/E ratio of 14.10, while HAS has a forward P/E of 17.45. We also note that MAT has a PEG ratio of 1.29. 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. HAS currently has a PEG ratio of 1.50.

Another notable valuation metric for MAT is its P/B ratio of 3.17. 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, HAS has a P/B of 7.20.

Based on these metrics and many more, MAT holds a Value grade of A, while HAS has a Value grade of C.

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


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