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SIG vs. CFRUY: Which Stock Is the Better Value Option?

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Investors with an interest in Retail - Jewelry stocks have likely encountered both Signet (SIG) and Compagnie Financiere Richemont AG (CFRUY). But which of these two stocks presents investors with the better value opportunity right now? Let's 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 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.

Signet has a Zacks Rank of #1 (Strong Buy), while Compagnie Financiere Richemont AG has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SIG is likely seeing its earnings outlook improve to a greater extent. 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.

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.

SIG currently has a forward P/E ratio of 4.61, while CFRUY has a forward P/E of 19.09. We also note that SIG has a PEG ratio of 0.58. 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 1.11.

Another notable valuation metric for SIG is its P/B ratio of 2.28. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CFRUY has a P/B of 4.83.

These metrics, and several others, help SIG earn a Value grade of A, while CFRUY has been given a Value grade of C.

SIG stands above CFRUY thanks to its solid earnings outlook, and based on these valuation figures, we also 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
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