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KTB or CTAS: Which Is the Better Value Stock Right Now?
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Investors interested in Textile - Apparel stocks are likely familiar with Kontoor Brands (KTB - Free Report) and Cintas (CTAS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
Currently, Kontoor Brands has a Zacks Rank of #2 (Buy), while Cintas 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 KTB has an improving earnings outlook. But this is just one piece of the puzzle 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
KTB currently has a forward P/E ratio of 12.59, while CTAS has a forward P/E of 38.01. We also note that KTB has a PEG ratio of 1.57. 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. CTAS currently has a PEG ratio of 3.17.
Another notable valuation metric for KTB is its P/B ratio of 7.27. 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, CTAS has a P/B of 15.55.
Based on these metrics and many more, KTB holds a Value grade of B, while CTAS has a Value grade of F.
KTB stands above CTAS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KTB is the superior value option right now.
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KTB or CTAS: Which Is the Better Value Stock Right Now?
Investors interested in Textile - Apparel stocks are likely familiar with Kontoor Brands (KTB - Free Report) and Cintas (CTAS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
Currently, Kontoor Brands has a Zacks Rank of #2 (Buy), while Cintas 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 KTB has an improving earnings outlook. But this is just one piece of the puzzle 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
KTB currently has a forward P/E ratio of 12.59, while CTAS has a forward P/E of 38.01. We also note that KTB has a PEG ratio of 1.57. 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. CTAS currently has a PEG ratio of 3.17.
Another notable valuation metric for KTB is its P/B ratio of 7.27. 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, CTAS has a P/B of 15.55.
Based on these metrics and many more, KTB holds a Value grade of B, while CTAS has a Value grade of F.
KTB stands above CTAS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KTB is the superior value option right now.