ASO or YETI: Which Is the Better Value Stock Right Now?
Investors with an interest in Leisure and Recreation Products stocks have likely encountered both Academy Sports and Outdoors, Inc. (ASO) and Yeti (YETI). 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Academy Sports and Outdoors, Inc. has a Zacks Rank of #1 (Strong Buy), while Yeti has a Zacks Rank of #3 (Hold) right now. This means that ASO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
ASO currently has a forward P/E ratio of 6.05, while YETI has a forward P/E of 32.43. We also note that ASO 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. YETI currently has a PEG ratio of 1.83.
Another notable valuation metric for ASO is its P/B ratio of 2.90. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, YETI has a P/B of 16.42.
These metrics, and several others, help ASO earn a Value grade of A, while YETI has been given a Value grade of C.
ASO 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 ASO is likely the superior value option right now.
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Academy Sports and Outdoors, Inc. (ASO) : Free Stock Analysis Report
YETI Holdings, Inc. (YETI) : Free Stock Analysis Report
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