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TLYS vs. GOOS: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both Tilly's (TLYS - Free Report) and Canada Goose (GOOS - 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.

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

Tilly's has a Zacks Rank of #2 (Buy), while Canada Goose has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that TLYS likely has seen a stronger improvement to its earnings outlook than GOOS has recently. But this is just one factor that value investors are interested in.

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.

TLYS currently has a forward P/E ratio of 16.45, while GOOS has a forward P/E of 36.54. We also note that TLYS has a PEG ratio of 1.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GOOS currently has a PEG ratio of 4.09.

Another notable valuation metric for TLYS is its P/B ratio of 2.24. 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, GOOS has a P/B of 10.14.

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

TLYS stands above GOOS 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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