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SKX vs. BIRK: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Shoes and Retail Apparel sector have probably already heard of Skechers (SKX - Free Report) and Birkenstock (BIRK - 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.
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 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.
Skechers and Birkenstock are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. This means that SKX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
SKX currently has a forward P/E ratio of 15.55, while BIRK has a forward P/E of 41.89. We also note that SKX has a PEG ratio of 0.91. 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. BIRK currently has a PEG ratio of 1.65.
Another notable valuation metric for SKX is its P/B ratio of 2.19. 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, BIRK has a P/B of 3.88.
These are just a few of the metrics contributing to SKX's Value grade of B and BIRK's Value grade of F.
SKX sticks out from BIRK in both our Zacks Rank and Style Scores models, so value investors will likely feel that SKX is the better option right now.
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SKX vs. BIRK: Which Stock Is the Better Value Option?
Investors interested in stocks from the Shoes and Retail Apparel sector have probably already heard of Skechers (SKX - Free Report) and Birkenstock (BIRK - 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.
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 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.
Skechers and Birkenstock are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. This means that SKX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
SKX currently has a forward P/E ratio of 15.55, while BIRK has a forward P/E of 41.89. We also note that SKX has a PEG ratio of 0.91. 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. BIRK currently has a PEG ratio of 1.65.
Another notable valuation metric for SKX is its P/B ratio of 2.19. 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, BIRK has a P/B of 3.88.
These are just a few of the metrics contributing to SKX's Value grade of B and BIRK's Value grade of F.
SKX sticks out from BIRK in both our Zacks Rank and Style Scores models, so value investors will likely feel that SKX is the better option right now.