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Crocs, Inc. (CROX) - free report >>
LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) - free report >>
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Crocs, Inc. (CROX) - free report >>
LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) - free report >>
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CROX vs. LVMUY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Textile - Apparel sector have probably already heard of Crocs (CROX - Free Report) and LVMH-Moet 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.
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, Crocs has a Zacks Rank of #2 (Buy), while LVMH-Moet Hennessy Louis Vuitton SA has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CROX 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 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.
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.
CROX currently has a forward P/E ratio of 11.30, while LVMUY has a forward P/E of 23.26. We also note that CROX has a PEG ratio of 1.60. 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. LVMUY currently has a PEG ratio of 1.88.
Another notable valuation metric for CROX is its P/B ratio of 5.46. 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, LVMUY has a P/B of 5.77.
Based on these metrics and many more, CROX holds a Value grade of B, while LVMUY has a Value grade of F.
CROX sticks out from LVMUY in both our Zacks Rank and Style Scores models, so value investors will likely feel that CROX is the better option right now.