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TPR or FIGS: Which Is the Better Value Stock Right Now?

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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Tapestry (TPR - Free Report) and Figs (FIGS - 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, Tapestry has a Zacks Rank of #1 (Strong Buy), while Figs has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TPR 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 try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

TPR currently has a forward P/E ratio of 7.80, while FIGS has a forward P/E of 49.68. We also note that TPR has a PEG ratio of 0.62. 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 22.89.

Another notable valuation metric for TPR is its P/B ratio of 3.31. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, FIGS has a P/B of 3.92.

Based on these metrics and many more, TPR holds a Value grade of A, while FIGS has a Value grade of D.

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


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Tapestry, Inc. (TPR) - free report >>

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