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DLA vs. GIL: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Textile - Apparel sector have probably already heard of Delta Apparel (DLA - Free Report) and Gildan Activewear (GIL - 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.
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 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.
Delta Apparel and Gildan Activewear are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DLA has an improving earnings outlook. 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.
DLA currently has a forward P/E ratio of 12.41, while GIL has a forward P/E of 15.81. We also note that DLA has a PEG ratio of 0.83. 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. GIL currently has a PEG ratio of 1.39.
Another notable valuation metric for DLA is its P/B ratio of 0.91. 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, GIL has a P/B of 3.21.
These are just a few of the metrics contributing to DLA's Value grade of A and GIL's Value grade of C.
DLA has seen stronger estimate revision activity and sports more attractive valuation metrics than GIL, so it seems like value investors will conclude that DLA is the superior option right now.
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DLA vs. GIL: Which Stock Is the Better Value Option?
Investors interested in stocks from the Textile - Apparel sector have probably already heard of Delta Apparel (DLA - Free Report) and Gildan Activewear (GIL - 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.
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 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.
Delta Apparel and Gildan Activewear are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DLA has an improving earnings outlook. 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.
DLA currently has a forward P/E ratio of 12.41, while GIL has a forward P/E of 15.81. We also note that DLA has a PEG ratio of 0.83. 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. GIL currently has a PEG ratio of 1.39.
Another notable valuation metric for DLA is its P/B ratio of 0.91. 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, GIL has a P/B of 3.21.
These are just a few of the metrics contributing to DLA's Value grade of A and GIL's Value grade of C.
DLA has seen stronger estimate revision activity and sports more attractive valuation metrics than GIL, so it seems like value investors will conclude that DLA is the superior option right now.