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YETI vs. SRAD: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Leisure and Recreation Products sector have probably already heard of Yeti (YETI - Free Report) and Sportradar Group AG (SRAD - 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.

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.

Yeti has a Zacks Rank of #2 (Buy), while Sportradar Group AG has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that YETI likely has seen a stronger improvement to its earnings outlook than SRAD has recently. But this is just one piece of the puzzle 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.

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.

YETI currently has a forward P/E ratio of 16.05, while SRAD has a forward P/E of 155.29. We also note that YETI has a PEG ratio of 1.14. 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. SRAD currently has a PEG ratio of 3.91.

Another notable valuation metric for YETI is its P/B ratio of 5.07. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SRAD has a P/B of 12.77.

These metrics, and several others, help YETI earn a Value grade of B, while SRAD has been given a Value grade of F.

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


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YETI Holdings, Inc. (YETI) - free report >>

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