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DG or TJX: Which Is the Better Value Stock Right Now?
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Investors with an interest in Retail - Discount Stores stocks have likely encountered both Dollar General (DG - Free Report) and TJX (TJX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Dollar General is sporting a Zacks Rank of #2 (Buy), while TJX has a Zacks Rank of #3 (Hold). This means that DG's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
DG currently has a forward P/E ratio of 19.87, while TJX has a forward P/E of 27.63. We also note that DG has a PEG ratio of 2.81. 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. TJX currently has a PEG ratio of 2.88.
Another notable valuation metric for DG is its P/B ratio of 3.27. 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, TJX has a P/B of 16.23.
Based on these metrics and many more, DG holds a Value grade of A, while TJX has a Value grade of D.
DG has seen stronger estimate revision activity and sports more attractive valuation metrics than TJX, so it seems like value investors will conclude that DG is the superior option right now.
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DG or TJX: Which Is the Better Value Stock Right Now?
Investors with an interest in Retail - Discount Stores stocks have likely encountered both Dollar General (DG - Free Report) and TJX (TJX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Dollar General is sporting a Zacks Rank of #2 (Buy), while TJX has a Zacks Rank of #3 (Hold). This means that DG's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
DG currently has a forward P/E ratio of 19.87, while TJX has a forward P/E of 27.63. We also note that DG has a PEG ratio of 2.81. 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. TJX currently has a PEG ratio of 2.88.
Another notable valuation metric for DG is its P/B ratio of 3.27. 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, TJX has a P/B of 16.23.
Based on these metrics and many more, DG holds a Value grade of A, while TJX has a Value grade of D.
DG has seen stronger estimate revision activity and sports more attractive valuation metrics than TJX, so it seems like value investors will conclude that DG is the superior option right now.