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MBUU vs. YETI: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Leisure and Recreation Products sector might want to consider either Malibu Boats (MBUU - Free Report) or Yeti (YETI - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Both Malibu Boats and Yeti have a Zacks Rank of # 1 (Strong Buy) right now. 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. However, value investors will care about much more than just this.

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.

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.

MBUU currently has a forward P/E ratio of 12.42, while YETI has a forward P/E of 24.83. We also note that MBUU has a PEG ratio of 1.24. 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. YETI currently has a PEG ratio of 1.45.

Another notable valuation metric for MBUU is its P/B ratio of 4.51. 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, YETI has a P/B of 33.03.

These are just a few of the metrics contributing to MBUU's Value grade of A and YETI's Value grade of D.

Both MBUU and YETI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MBUU is the superior value option right now.


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Malibu Boats, Inc. (MBUU) - free report >>

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