SIG vs. CFRUY: Which Stock Is the Better Value Option?
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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Signet and Compagnie Financiere Richemont AG are sporting Zacks Ranks of #2 (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 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 9.74, while CFRUY has a forward P/E of 22.21. We also note that SIG has a PEG ratio of 1.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CFRUY currently has a PEG ratio of 2.31.
Another notable valuation metric for SIG is its P/B ratio of 2.83. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CFRUY has a P/B of 8.43.
These metrics, and several others, help SIG earn a Value grade of A, while CFRUY has been given a Value grade of C.
SIG is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SIG is likely 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
