We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NUS or IPAR: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in stocks from the Cosmetics sector have probably already heard of Nu Skin Enterprises (NUS - Free Report) and Inter Parfums (IPAR - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Nu Skin Enterprises has a Zacks Rank of #2 (Buy), while Inter Parfums has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that NUS likely has seen a stronger improvement to its earnings outlook than IPAR has recently. However, value investors will care about much more than just this.
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 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.
NUS currently has a forward P/E ratio of 9.91, while IPAR has a forward P/E of 34.92. We also note that NUS has a PEG ratio of 0.89. 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. IPAR currently has a PEG ratio of 2.85.
Another notable valuation metric for NUS is its P/B ratio of 2.66. 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, IPAR has a P/B of 3.47.
These metrics, and several others, help NUS earn a Value grade of A, while IPAR has been given a Value grade of D.
NUS stands above IPAR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NUS is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
NUS or IPAR: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Cosmetics sector have probably already heard of Nu Skin Enterprises (NUS - Free Report) and Inter Parfums (IPAR - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Nu Skin Enterprises has a Zacks Rank of #2 (Buy), while Inter Parfums has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that NUS likely has seen a stronger improvement to its earnings outlook than IPAR has recently. However, value investors will care about much more than just this.
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 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.
NUS currently has a forward P/E ratio of 9.91, while IPAR has a forward P/E of 34.92. We also note that NUS has a PEG ratio of 0.89. 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. IPAR currently has a PEG ratio of 2.85.
Another notable valuation metric for NUS is its P/B ratio of 2.66. 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, IPAR has a P/B of 3.47.
These metrics, and several others, help NUS earn a Value grade of A, while IPAR has been given a Value grade of D.
NUS stands above IPAR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NUS is the superior value option right now.