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SPB or VZIO: Which Is the Better Value Stock Right Now?

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Investors with an interest in Consumer Products - Discretionary stocks have likely encountered both Spectrum Brands (SPB - Free Report) and VIZIO Holding Corp. (VZIO - 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Spectrum Brands is sporting a Zacks Rank of #2 (Buy), while VIZIO Holding Corp. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SPB likely has seen a stronger improvement to its earnings outlook than VZIO has recently. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

SPB currently has a forward P/E ratio of 18.54, while VZIO has a forward P/E of 279. We also note that SPB has a PEG ratio of 0.38. 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. VZIO currently has a PEG ratio of 11.16.

Another notable valuation metric for SPB is its P/B ratio of 1.19. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, VZIO has a P/B of 4.73.

Based on these metrics and many more, SPB holds a Value grade of B, while VZIO has a Value grade of D.

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


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Spectrum Brands Holdings Inc. (SPB) - free report >>

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