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SKX or BIRK: Which Is the Better Value Stock Right Now? August 14, 2024
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Investors looking for stocks in the Shoes and Retail Apparel sector might want to consider either Skechers (SKX - Free Report) or Birkenstock (BIRK - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Skechers and Birkenstock are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.
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 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.
SKX currently has a forward P/E ratio of 15.31, while BIRK has a forward P/E of 44.16. We also note that SKX has a PEG ratio of 0.88. 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. BIRK currently has a PEG ratio of 1.71.
Another notable valuation metric for SKX is its P/B ratio of 2.15. 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, BIRK has a P/B of 4.09.
These metrics, and several others, help SKX earn a Value grade of A, while BIRK has been given a Value grade of F.
Both SKX and BIRK are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SKX is the superior value option right now.
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Investors looking for stocks in the Shoes and Retail Apparel sector might want to consider either Skechers (SKX - Free Report) or Birkenstock (BIRK - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Skechers and Birkenstock are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.
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 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.
SKX currently has a forward P/E ratio of 15.31, while BIRK has a forward P/E of 44.16. We also note that SKX has a PEG ratio of 0.88. 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. BIRK currently has a PEG ratio of 1.71.
Another notable valuation metric for SKX is its P/B ratio of 2.15. 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, BIRK has a P/B of 4.09.
These metrics, and several others, help SKX earn a Value grade of A, while BIRK has been given a Value grade of F.
Both SKX and BIRK are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SKX is the superior value option right now.