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

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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Tilly's (TLYS - Free Report) and Stitch Fix (SFIX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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.

Right now, Tilly's is sporting a Zacks Rank of #2 (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 TLYS has an improving earnings outlook. But this is only part of the picture for value investors.

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.

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.

TLYS currently has a forward P/E ratio of 13.64, while SFIX has a forward P/E of 855.84. We also note that TLYS has a PEG ratio of 1.24. 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 38.04.

Another notable valuation metric for TLYS is its P/B ratio of 1.98. 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, SFIX has a P/B of 5.95.

These metrics, and several others, help TLYS earn a Value grade of A, while SFIX has been given a Value grade of F.

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


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Tilly's, Inc. (TLYS) - free report >>

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