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EWCZ vs. ELF: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Cosmetics sector might want to consider either European Wax Center, Inc. (EWCZ - Free Report) or e.l.f. Beauty (ELF - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
European Wax Center, Inc. has a Zacks Rank of #2 (Buy), while e.l.f. Beauty has a Zacks Rank of #3 (Hold) right now. This means that EWCZ'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 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.
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.
EWCZ currently has a forward P/E ratio of 6.50, while ELF has a forward P/E of 30.22. We also note that EWCZ has a PEG ratio of 0.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ELF currently has a PEG ratio of 5.05.
Another notable valuation metric for EWCZ is its P/B ratio of 2.07. 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, ELF has a P/B of 4.49.
Based on these metrics and many more, EWCZ holds a Value grade of A, while ELF has a Value grade of F.
EWCZ has seen stronger estimate revision activity and sports more attractive valuation metrics than ELF, so it seems like value investors will conclude that EWCZ is the superior option right now.
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EWCZ vs. ELF: Which Stock Is the Better Value Option?
Investors looking for stocks in the Cosmetics sector might want to consider either European Wax Center, Inc. (EWCZ - Free Report) or e.l.f. Beauty (ELF - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
European Wax Center, Inc. has a Zacks Rank of #2 (Buy), while e.l.f. Beauty has a Zacks Rank of #3 (Hold) right now. This means that EWCZ'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 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.
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.
EWCZ currently has a forward P/E ratio of 6.50, while ELF has a forward P/E of 30.22. We also note that EWCZ has a PEG ratio of 0.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ELF currently has a PEG ratio of 5.05.
Another notable valuation metric for EWCZ is its P/B ratio of 2.07. 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, ELF has a P/B of 4.49.
Based on these metrics and many more, EWCZ holds a Value grade of A, while ELF has a Value grade of F.
EWCZ has seen stronger estimate revision activity and sports more attractive valuation metrics than ELF, so it seems like value investors will conclude that EWCZ is the superior option right now.