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PLCE vs. BOOT: Which Stock Should Value Investors Buy Now?

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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with The Children's Place (PLCE - Free Report) and Boot Barn (BOOT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Both The Children's Place and Boot Barn have a Zacks Rank of # 1 (Strong Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

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.

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.

PLCE currently has a forward P/E ratio of 5.73, while BOOT has a forward P/E of 20.32. We also note that PLCE has a PEG ratio of 0.72. 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. BOOT currently has a PEG ratio of 1.02.

Another notable valuation metric for PLCE is its P/B ratio of 5.04. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, BOOT has a P/B of 6.91.

These metrics, and several others, help PLCE earn a Value grade of B, while BOOT has been given a Value grade of F.

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


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Boot Barn Holdings, Inc. (BOOT) - free report >>

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