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MCFT or POOL: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Leisure and Recreation Products sector might want to consider either MasterCraft Boat Holdings, Inc. (MCFT - Free Report) or Pool Corp. (POOL - 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.

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

MasterCraft Boat Holdings, Inc. and Pool Corp. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that MCFT likely has seen a stronger improvement to its earnings outlook than POOL has recently. 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 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.

MCFT currently has a forward P/E ratio of 7.61, while POOL has a forward P/E of 28.37. We also note that MCFT has a PEG ratio of 0.76. 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. POOL currently has a PEG ratio of 1.21.

Another notable valuation metric for MCFT is its P/B ratio of 4.82. 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, POOL has a P/B of 31.32.

Based on these metrics and many more, MCFT holds a Value grade of A, while POOL has a Value grade of C.

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


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