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

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Investors with an interest in Textile - Apparel stocks have likely encountered both Superior Group (SGC - Free Report) and Cintas (CTAS - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Superior Group 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 SGC has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

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.

SGC currently has a forward P/E ratio of 19.73, while CTAS has a forward P/E of 37.15. We also note that SGC has a PEG ratio of 1.97. 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 3.29.

Another notable valuation metric for SGC is its P/B ratio of 1.04. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CTAS has a P/B of 15.86.

These are just a few of the metrics contributing to SGC's Value grade of A and CTAS's Value grade of F.

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

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