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SIG or CFRUY: Which Is the Better Value Stock Right Now?

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Investors interested in Retail - Jewelry stocks are likely familiar with Signet (SIG - Free Report) and Compagnie Financiere Richemont AG (CFRUY - 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.

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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Signet and Compagnie Financiere Richemont AG are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that SIG's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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.

SIG currently has a forward P/E ratio of 8.75, while CFRUY has a forward P/E of 25.03. We also note that SIG has a PEG ratio of 0.99. 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. CFRUY currently has a PEG ratio of 3.53.

Another notable valuation metric for SIG is its P/B ratio of 2.15. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CFRUY has a P/B of 7.45.

These are just a few of the metrics contributing to SIG's Value grade of B and CFRUY's Value grade of C.

SIG sticks out from CFRUY in both our Zacks Rank and Style Scores models, so value investors will likely feel that SIG is the better option right now.

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