Back to top

Image: Bigstock

NUS vs. PORBF: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors with an interest in Cosmetics stocks have likely encountered both Nu Skin Enterprises (NUS - Free Report) and POLA ORBIS (PORBF - 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.

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

Currently, Nu Skin Enterprises has a Zacks Rank of #2 (Buy), while POLA ORBIS has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that NUS likely has seen a stronger improvement to its earnings outlook than PORBF has recently. However, value investors will care about much more than just this.

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.

NUS currently has a forward P/E ratio of 15.98, while PORBF has a forward P/E of 22.58. We also note that NUS has a PEG ratio of 9.45. 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. PORBF currently has a PEG ratio of 14.11.

Another notable valuation metric for NUS is its P/B ratio of 2.34. 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, PORBF has a P/B of 2.38.

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

NUS has seen stronger estimate revision activity and sports more attractive valuation metrics than PORBF, so it seems like value investors will conclude that NUS is the superior option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Nu Skin Enterprises, Inc. (NUS) - free report >>

POLA ORBIS (PORBF) - free report >>

Published in