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VSXY vs. IDEXY: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Victoria's Secret (VSXY - Free Report) or Industria de Diseno Textil SA (IDEXY - 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.

Right now, Victoria's Secret is sporting a Zacks Rank of #2 (Buy), while Industria de Diseno Textil SA has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that VSXY likely has seen a stronger improvement to its earnings outlook than IDEXY has recently. But this is only part of the picture for value investors.

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.

VSXY currently has a forward P/E ratio of 22.01, while IDEXY has a forward P/E of 26.55. We also note that VSXY has a PEG ratio of 0.70. 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. IDEXY currently has a PEG ratio of 2.77.

Another notable valuation metric for VSXY is its P/B ratio of 7.94. 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, IDEXY has a P/B of 9.95.

These are just a few of the metrics contributing to VSXY's Value grade of B and IDEXY's Value grade of F.

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

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