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 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 and Compagnie Financiere Richemont AG are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SIG has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
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 9.43, while CFRUY has a forward P/E of 20.69. We also note that SIG has a PEG ratio of 1.11. 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. CFRUY currently has a PEG ratio of 2.80.
Another notable valuation metric for SIG is its P/B ratio of 2.04. 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 8.32.
These metrics, and several others, help SIG earn a Value grade of A, while CFRUY has been given a Value grade of C.
SIG sticks out from CFRUY in both our Zacks Rank and Style Scores models, so value investors will likely feel that SIG is the better option right now.
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Signet Jewelers Limited (SIG) : Free Stock Analysis Report
Compagnie Financiere Richemont AG (CFRUY) : Free Stock Analysis Report
