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ACCO vs. SN: Which Stock Is the Better Value Option?

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Investors interested in Consumer Products - Discretionary stocks are likely familiar with Acco Brands (ACCO - Free Report) and SharkNinja, Inc. (SN - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Acco Brands has a Zacks Rank of #2 (Buy), while SharkNinja, Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ACCO likely has seen a stronger improvement to its earnings outlook than SN has recently. 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.

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.

ACCO currently has a forward P/E ratio of 4.49, while SN has a forward P/E of 20.04. We also note that ACCO has a PEG ratio of 0.75. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SN currently has a PEG ratio of 1.54.

Another notable valuation metric for ACCO is its P/B ratio of 0.53. 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, SN has a P/B of 6.28.

These are just a few of the metrics contributing to ACCO's Value grade of A and SN's Value grade of D.

ACCO has seen stronger estimate revision activity and sports more attractive valuation metrics than SN, so it seems like value investors will conclude that ACCO is the superior option right now.

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