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YETI or SRAD: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Leisure and Recreation Products sector might want to consider either Yeti (YETI - Free Report) or Sportradar Group AG (SRAD - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Yeti has a Zacks Rank of #2 (Buy), while Sportradar Group AG has a Zacks Rank of #3 (Hold). This means that YETI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

YETI currently has a forward P/E ratio of 15.75, while SRAD has a forward P/E of 595.50. We also note that YETI has a PEG ratio of 1.08. 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. SRAD currently has a PEG ratio of 15.

Another notable valuation metric for YETI is its P/B ratio of 5.03. 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, SRAD has a P/B of 14.

These metrics, and several others, help YETI earn a Value grade of B, while SRAD has been given a Value grade of F.

YETI stands above SRAD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that YETI is the superior value option right now.


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