Yahoo Finance SIG or CFRUY: Which Is the Better Value Stock Right Now?
Investors interested in Retail - Jewelry stocks are likely familiar with Signet (SIG) and Compagnie Financiere Richemont AG (CFRUY). 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both Signet and Compagnie Financiere Richemont AG are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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 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.
SIG currently has a forward P/E ratio of 6.58, while CFRUY has a forward P/E of 21.42. We also note that SIG has a PEG ratio of 0.82. 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. CFRUY currently has a PEG ratio of 1.16.
Another notable valuation metric for SIG is its P/B ratio of 2.48. 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, CFRUY has a P/B of 6.75.
Based on these metrics and many more, SIG holds a Value grade of A, while CFRUY has a Value grade of D.
Both SIG and CFRUY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SIG is the superior value option right now.
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Signet Jewelers Limited (SIG) : Free Stock Analysis Report
Compagnie Financiere Richemont AG (CFRUY) : Free Stock Analysis Report