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SGC or RVLV: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Textile - Apparel sector might want to consider either Superior Group (SGC - Free Report) or Revolve Group (RVLV - 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.

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 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.

Superior Group and Revolve Group are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that SGC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

SGC currently has a forward P/E ratio of 19.72, while RVLV has a forward P/E of 24.32. We also note that SGC has a PEG ratio of 1.97. 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. RVLV currently has a PEG ratio of 2.25.

Another notable valuation metric for SGC is its P/B ratio of 0.94. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, RVLV has a P/B of 2.82.

These metrics, and several others, help SGC earn a Value grade of B, while RVLV has been given a Value grade of C.

SGC stands above RVLV thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SGC is the superior value option right now.

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