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BOOT vs. SFIX: Which Stock Is the Better Value Option?

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Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both Boot Barn (BOOT - Free Report) and Stitch Fix (SFIX - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Boot Barn has a Zacks Rank of #1 (Strong Buy), while Stitch Fix has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BOOT has an improving earnings outlook. But this is just one piece of the puzzle 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

BOOT currently has a forward P/E ratio of 19.16, while SFIX has a forward P/E of 83.89. We also note that BOOT has a PEG ratio of 1.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SFIX currently has a PEG ratio of 3.73.

Another notable valuation metric for BOOT is its P/B ratio of 3.23. 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, SFIX has a P/B of 6.05.

These are just a few of the metrics contributing to BOOT's Value grade of B and SFIX's Value grade of C.

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


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Boot Barn Holdings, Inc. (BOOT) - free report >>

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

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