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AKA or BOOT: Which Is the Better Value Stock Right Now?

·2-min read

Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of a.k.a. Brands (AKA) and Boot Barn (BOOT). 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.

Both a.k.a. Brands and Boot Barn have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

AKA currently has a forward P/E ratio of 18.82, while BOOT has a forward P/E of 21.98. We also note that AKA has a PEG ratio of 0.40. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BOOT currently has a PEG ratio of 1.10.

Another notable valuation metric for AKA is its P/B ratio of 2.94. 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, BOOT has a P/B of 7.54.

These are just a few of the metrics contributing to AKA's Value grade of B and BOOT's Value grade of C.

Both AKA and BOOT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AKA is the superior value option right now.

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a.k.a. Brands Holding Corp. (AKA) : Free Stock Analysis Report
Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report
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