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TLYS vs. SFIX: Which Stock Is the Better Value Option?

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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Tilly's (TLYS - Free Report) and Stitch Fix (SFIX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 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.

Right now, Tilly's is sporting a Zacks Rank of #1 (Strong Buy), while Stitch Fix has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TLYS has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

TLYS currently has a forward P/E ratio of 11.72, while SFIX has a forward P/E of 977.08. We also note that TLYS has a PEG ratio of 1.07. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SFIX currently has a PEG ratio of 32.57.

Another notable valuation metric for TLYS is its P/B ratio of 1.65. 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, SFIX has a P/B of 5.42.

Based on these metrics and many more, TLYS holds a Value grade of A, while SFIX has a Value grade of D.

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


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Tilly's, Inc. (TLYS) - free report >>

Stitch Fix, Inc. (SFIX) - free report >>

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