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DG vs. ROST: Which Stock Is the Better Value Option?
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Investors interested in Retail - Discount Stores stocks are likely familiar with Dollar General (DG - Free Report) and Ross Stores (ROST - 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Dollar General has a Zacks Rank of #2 (Buy), while Ross Stores has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that DG likely has seen a stronger improvement to its earnings outlook than ROST has recently. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
DG currently has a forward P/E ratio of 16.84, while ROST has a forward P/E of 26.34. We also note that DG has a PEG ratio of 1.73. 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. ROST currently has a PEG ratio of 1.91.
Another notable valuation metric for DG is its P/B ratio of 3.18. 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, ROST has a P/B of 10.95.
Based on these metrics and many more, DG holds a Value grade of B, while ROST has a Value grade of D.
DG stands above ROST thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DG is the superior value option right now.
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DG vs. ROST: Which Stock Is the Better Value Option?
Investors interested in Retail - Discount Stores stocks are likely familiar with Dollar General (DG - Free Report) and Ross Stores (ROST - 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Dollar General has a Zacks Rank of #2 (Buy), while Ross Stores has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that DG likely has seen a stronger improvement to its earnings outlook than ROST has recently. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
DG currently has a forward P/E ratio of 16.84, while ROST has a forward P/E of 26.34. We also note that DG has a PEG ratio of 1.73. 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. ROST currently has a PEG ratio of 1.91.
Another notable valuation metric for DG is its P/B ratio of 3.18. 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, ROST has a P/B of 10.95.
Based on these metrics and many more, DG holds a Value grade of B, while ROST has a Value grade of D.
DG stands above ROST thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DG is the superior value option right now.