CPRI vs. FIGS: Which Stock Is the Better Value Option?
Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Capri Holdings (CPRI) or Figs (FIGS). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Both Capri Holdings and Figs 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 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
CPRI currently has a forward P/E ratio of 12.29, while FIGS has a forward P/E of 96.32. We also note that CPRI has a PEG ratio of 0.38. 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. FIGS currently has a PEG ratio of 29.82.
Another notable valuation metric for CPRI is its P/B ratio of 3.80. 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, FIGS has a P/B of 17.37.
These are just a few of the metrics contributing to CPRI's Value grade of A and FIGS's Value grade of F.
Both CPRI and FIGS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CPRI is the superior value option right now.
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