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Sportsman's Warehouse Holdings, Inc. (SPWH) - free report >>
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Sportsman's Warehouse Holdings, Inc. (SPWH) - free report >>
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SPWH or GOOS: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Sportsman's Warehouse (SPWH - Free Report) and Canada Goose (GOOS - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both Sportsman's Warehouse and Canada Goose are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.
SPWH currently has a forward P/E ratio of 9.98, while GOOS has a forward P/E of 65.09. We also note that SPWH has a PEG ratio of 1. 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. GOOS currently has a PEG ratio of 2.48.
Another notable valuation metric for SPWH is its P/B ratio of 5.39. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, GOOS has a P/B of 35.08.
These metrics, and several others, help SPWH earn a Value grade of A, while GOOS has been given a Value grade of F.
Both SPWH and GOOS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SPWH is the superior value option right now.