HELE vs. ELF: Which Stock Is the Better Value Option?
Investors interested in Cosmetics stocks are likely familiar with Helen of Troy (HELE) and e.l.f. Beauty (ELF). 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Helen of Troy and e.l.f. Beauty have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
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 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.
HELE currently has a forward P/E ratio of 13.80, while ELF has a forward P/E of 49.96. We also note that HELE has a PEG ratio of 1.73. 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. ELF currently has a PEG ratio of 2.31.
Another notable valuation metric for HELE is its P/B ratio of 1.94. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ELF has a P/B of 13.63.
These are just a few of the metrics contributing to HELE's Value grade of B and ELF's Value grade of F.
Both HELE and ELF are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HELE is the superior value option right now.
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Helen of Troy Limited (HELE) : Free Stock Analysis Report
e.l.f. Beauty (ELF) : Free Stock Analysis Report
