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IDEXY or DECK: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Industria de Diseno Textil SA (IDEXY - Free Report) or Deckers (DECK - 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.

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 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.

Currently, Industria de Diseno Textil SA has a Zacks Rank of #2 (Buy), while Deckers has a Zacks Rank of #3 (Hold). This means that IDEXY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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 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.

IDEXY currently has a forward P/E ratio of 27.23, while DECK has a forward P/E of 29.85. We also note that IDEXY has a PEG ratio of 2.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DECK currently has a PEG ratio of 2.76.

Another notable valuation metric for IDEXY is its P/B ratio of 10.34. 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, DECK has a P/B of 11.44.

These are just a few of the metrics contributing to IDEXY's Value grade of B and DECK's Value grade of C.

IDEXY stands above DECK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that IDEXY is the superior value option right now.


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