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HIBB vs. PPRUY: 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 Hibbett (HIBB - Free Report) and Kering SA (PPRUY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Hibbett has a Zacks Rank of #2 (Buy), while Kering SA has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that HIBB likely has seen a stronger improvement to its earnings outlook than PPRUY has recently. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.

HIBB currently has a forward P/E ratio of 6.11, while PPRUY has a forward P/E of 14.35. We also note that HIBB has a PEG ratio of 0.77. 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 4.57.

Another notable valuation metric for HIBB is its P/B ratio of 1.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PPRUY has a P/B of 2.99.

These metrics, and several others, help HIBB earn a Value grade of A, while PPRUY has been given a Value grade of D.

HIBB has seen stronger estimate revision activity and sports more attractive valuation metrics than PPRUY, so it seems like value investors will conclude that HIBB is the superior option right now.


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Hibbett, Inc. (HIBB) - free report >>

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