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PVH Corp. (PVH) - free report >>
LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) - free report >>
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PVH Corp. (PVH) - free report >>
LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) - free report >>
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PVH vs. LVMUY: Which Stock Is the Better Value Option?
Investors interested in Textile - Apparel stocks are likely familiar with PVH (PVH - Free Report) and LVMHMoet Hennessy Louis Vuitton SA (LVMUY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.
Right now, PVH is sporting a Zacks Rank of #2 (Buy), while LVMHMoet Hennessy Louis Vuitton SA has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PVH likely has seen a stronger improvement to its earnings outlook than LVMUY has recently. 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.
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.
PVH currently has a forward P/E ratio of 7.79, while LVMUY has a forward P/E of 25.26. We also note that PVH has a PEG ratio of 0.82. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LVMUY currently has a PEG ratio of 1.62.
Another notable valuation metric for PVH is its P/B ratio of 0.77. 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, LVMUY has a P/B of 6.29.
These metrics, and several others, help PVH earn a Value grade of A, while LVMUY has been given a Value grade of D.
PVH has seen stronger estimate revision activity and sports more attractive valuation metrics than LVMUY, so it seems like value investors will conclude that PVH is the superior option right now.