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GOOS vs. IDEXY: Which Stock Is the Better Value Option?

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Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both Canada Goose (GOOS - Free Report) and Industria de Diseno Textil SA (IDEXY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Canada Goose has a Zacks Rank of #2 (Buy), while Industria de Diseno Textil SA has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GOOS has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.

GOOS currently has a forward P/E ratio of 10.59, while IDEXY has a forward P/E of 23.88. We also note that GOOS has a PEG ratio of 0.71. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. IDEXY currently has a PEG ratio of 2.74.

Another notable valuation metric for GOOS is its P/B ratio of 2.42. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, IDEXY has a P/B of 8.05.

These metrics, and several others, help GOOS earn a Value grade of A, while IDEXY has been given a Value grade of D.

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


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Canada Goose Holdings Inc. (GOOS) - free report >>

Industria de Diseno Textil SA (IDEXY) - free report >>

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