We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
KTB vs. CTAS: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors with an interest in Textile - Apparel stocks have likely encountered both Kontoor Brands (KTB - Free Report) and Cintas (CTAS - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Kontoor Brands is sporting a Zacks Rank of #2 (Buy), while Cintas has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that KTB likely has seen a stronger improvement to its earnings outlook than CTAS 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.
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.
KTB currently has a forward P/E ratio of 13.40, while CTAS has a forward P/E of 37.74. We also note that KTB has a PEG ratio of 1.68. 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. CTAS currently has a PEG ratio of 3.15.
Another notable valuation metric for KTB is its P/B ratio of 7.71. 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, CTAS has a P/B of 15.43.
These metrics, and several others, help KTB earn a Value grade of B, while CTAS has been given a Value grade of F.
KTB is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that KTB is likely the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
KTB vs. CTAS: Which Stock Is the Better Value Option?
Investors with an interest in Textile - Apparel stocks have likely encountered both Kontoor Brands (KTB - Free Report) and Cintas (CTAS - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Kontoor Brands is sporting a Zacks Rank of #2 (Buy), while Cintas has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that KTB likely has seen a stronger improvement to its earnings outlook than CTAS 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.
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.
KTB currently has a forward P/E ratio of 13.40, while CTAS has a forward P/E of 37.74. We also note that KTB has a PEG ratio of 1.68. 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. CTAS currently has a PEG ratio of 3.15.
Another notable valuation metric for KTB is its P/B ratio of 7.71. 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, CTAS has a P/B of 15.43.
These metrics, and several others, help KTB earn a Value grade of B, while CTAS has been given a Value grade of F.
KTB is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that KTB is likely the superior value option right now.