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Gildan Activewear, Inc. (GIL) - free report >>
LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) - free report >>
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Gildan Activewear, Inc. (GIL) - free report >>
LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) - free report >>
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GIL or LVMUY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Textile - Apparel sector have probably already heard of Gildan Activewear (GIL - Free Report) and LVMH-Moet Hennessy Louis Vuitton SA (LVMUY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Gildan Activewear has a Zacks Rank of #2 (Buy), while LVMH-Moet Hennessy Louis Vuitton SA has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that GIL likely has seen a stronger improvement to its earnings outlook than LVMUY has recently. But this is just one piece of the puzzle 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.
GIL currently has a forward P/E ratio of 12.61, while LVMUY has a forward P/E of 24.86. We also note that GIL has a PEG ratio of 1.40. 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. LVMUY currently has a PEG ratio of 1.89.
Another notable valuation metric for GIL is its P/B ratio of 3.22. 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, LVMUY has a P/B of 6.42.
These metrics, and several others, help GIL earn a Value grade of B, while LVMUY has been given a Value grade of D.
GIL stands above LVMUY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GIL is the superior value option right now.