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SIG or CFRUY: Which Is the Better Value Stock Right Now?

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Investors with an interest in Retail - Jewelry stocks have likely encountered both Signet (SIG - Free Report) and Compagnie Financiere Richemont AG (CFRUY - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Signet is sporting a Zacks Rank of #2 (Buy), while Compagnie Financiere Richemont AG has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SIG likely has seen a stronger improvement to its earnings outlook than CFRUY has recently. 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 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.

SIG currently has a forward P/E ratio of 9.10, while CFRUY has a forward P/E of 19.02. We also note that SIG has a PEG ratio of 1.14. 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. CFRUY currently has a PEG ratio of 1.92.

Another notable valuation metric for SIG is its P/B ratio of 1.97. 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, CFRUY has a P/B of 7.60.

These are just a few of the metrics contributing to SIG's Value grade of A and CFRUY's Value grade of C.

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


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