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BOOT vs. FIGS: Which Stock Is the Better Value Option?

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Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both Boot Barn (BOOT - Free Report) and Figs (FIGS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

Currently, Boot Barn has a Zacks Rank of #1 (Strong Buy), while Figs has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BOOT has an improving earnings outlook. But this is only part of the picture for value investors.

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 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.

BOOT currently has a forward P/E ratio of 13.36, while FIGS has a forward P/E of 68.53. We also note that BOOT has a PEG ratio of 0.67. 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. FIGS currently has a PEG ratio of 10.93.

Another notable valuation metric for BOOT is its P/B ratio of 4.41. 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, FIGS has a P/B of 12.46.

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

BOOT sticks out from FIGS in both our Zacks Rank and Style Scores models, so value investors will likely feel that BOOT is the better option right now.


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

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