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MNSO vs. PPRUY: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of MINISO Group Holding Limited Unsponsored ADR (MNSO - Free Report) and Kering SA (PPRUY - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

MINISO Group Holding Limited Unsponsored ADR has a Zacks Rank of #2 (Buy), while Kering SA has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MNSO is likely seeing its earnings outlook improve to a greater extent. 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.

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.

MNSO currently has a forward P/E ratio of 10, while PPRUY has a forward P/E of 13.24. We also note that MNSO has a PEG ratio of 0.22. 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. PPRUY currently has a PEG ratio of 1.59.

Another notable valuation metric for MNSO is its P/B ratio of 1.51. 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, PPRUY has a P/B of 3.31.

Based on these metrics and many more, MNSO holds a Value grade of A, while PPRUY has a Value grade of C.

MNSO stands above PPRUY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MNSO is the superior value option right now.


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Kering SA (PPRUY) - free report >>

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