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SCVL or SFIX: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Shoe Carnival (SCVL - Free Report) or Stitch Fix (SFIX - 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.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Shoe Carnival has a Zacks Rank of #1 (Strong Buy), while Stitch Fix has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SCVL is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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 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.

SCVL currently has a forward P/E ratio of 16.02, while SFIX has a forward P/E of 137.20. We also note that SCVL has a PEG ratio of 1.34. 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. SFIX currently has a PEG ratio of 9.15.

Another notable valuation metric for SCVL is its P/B ratio of 1.73. 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, SFIX has a P/B of 9.37.

Based on these metrics and many more, SCVL holds a Value grade of B, while SFIX has a Value grade of D.

SCVL stands above SFIX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SCVL is the superior value option right now.


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Shoe Carnival, Inc. (SCVL) - free report >>

Stitch Fix, Inc. (SFIX) - free report >>