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SKX vs. DECK: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Shoes and Retail Apparel stocks have likely encountered both Skechers (SKX - Free Report) and Deckers (DECK - 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.

Currently, Skechers has a Zacks Rank of #1 (Strong Buy), while Deckers has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SKX likely has seen a stronger improvement to its earnings outlook than DECK has recently. But this is just one factor that value investors are interested in.

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.

SKX currently has a forward P/E ratio of 16.22, while DECK has a forward P/E of 16.58. We also note that SKX has a PEG ratio of 1.08. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DECK currently has a PEG ratio of 1.37.

Another notable valuation metric for SKX is its P/B ratio of 2.41. 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, DECK has a P/B of 4.19.

These metrics, and several others, help SKX earn a Value grade of B, while DECK has been given a Value grade of C.

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


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Skechers U.S.A., Inc. (SKX) - free report >>

Deckers Outdoor Corporation (DECK) - free report >>

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