Yahoo Finance AKA or PPRUY: Which Is the Better Value Stock Right Now?
Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both a.k.a. Brands (AKA) and Kering SA (PPRUY). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 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, a.k.a. Brands is sporting a Zacks Rank of #2 (Buy), while Kering SA has a Zacks Rank of #3 (Hold). This means that AKA'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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
AKA currently has a forward P/E ratio of 14.62, while PPRUY has a forward P/E of 18.03. We also note that AKA has a PEG ratio of 0.95. 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. PPRUY currently has a PEG ratio of 2.24.
Another notable valuation metric for AKA is its P/B ratio of 0.50. 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, PPRUY has a P/B of 5.23.
These metrics, and several others, help AKA earn a Value grade of B, while PPRUY has been given a Value grade of C.
AKA has seen stronger estimate revision activity and sports more attractive valuation metrics than PPRUY, so it seems like value investors will conclude that AKA is the superior option right now.
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a.k.a. Brands Holding Corp. (AKA) : Free Stock Analysis Report
Kering SA (PPRUY) : Free Stock Analysis Report
