Investors with an interest in Consumer Products - Staples stocks have likely encountered both Energizer Holdings (ENR) and PURPLE INNOVATION, INC. (PRPL). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Energizer Holdings and PURPLE INNOVATION, INC. are holding a Zacks Rank of # 2 (Buy). 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. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
ENR currently has a forward P/E ratio of 15.80, while PRPL has a forward P/E of 32.81. We also note that ENR has a PEG ratio of 1.93. 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. PRPL currently has a PEG ratio of 2.09.
Another notable valuation metric for ENR is its P/B ratio of 8.15. 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, PRPL has a P/B of 50.31.
These are just a few of the metrics contributing to ENR's Value grade of B and PRPL's Value grade of C.
Both ENR and PRPL are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ENR is the superior value option right now.
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Energizer Holdings, Inc. (ENR) : Free Stock Analysis Report
PURPLE INNOVATION, INC. (PRPL) : Free Stock Analysis Report
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