GIII vs. KTB: Which Stock Is the Better Value Option?
Investors looking for stocks in the Textile - Apparel sector might want to consider either G-III Apparel Group (GIII) or Kontoor Brands (KTB). 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, G-III Apparel Group is sporting a Zacks Rank of #1 (Strong Buy), while Kontoor Brands has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that GIII likely has seen a stronger improvement to its earnings outlook than KTB has recently. However, value investors will care about much more than just this.
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 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.
GIII currently has a forward P/E ratio of 14.09, while KTB has a forward P/E of 17.02. We also note that GIII has a PEG ratio of 1.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KTB currently has a PEG ratio of 2.84.
Another notable valuation metric for GIII is its P/B ratio of 1.19. 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, KTB has a P/B of 28.09.
These metrics, and several others, help GIII earn a Value grade of A, while KTB has been given a Value grade of C.
GIII sticks out from KTB in both our Zacks Rank and Style Scores models, so value investors will likely feel that GIII is the better option right now.
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GIII Apparel Group, LTD. (GIII) : Free Stock Analysis Report
Kontoor Brands, Inc. (KTB) : Free Stock Analysis Report
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