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JILL vs. GOOS: Which Stock Is the Better Value Option?

Zacks Equity Research

Investors interested in Retail - Apparel and Shoes stocks are likely familiar with J.Jill (JILL) and Canada Goose (GOOS). 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 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.

Currently, J.Jill has a Zacks Rank of #1 (Strong Buy), while Canada Goose has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that JILL is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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 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.

JILL currently has a forward P/E ratio of 8.03, while GOOS has a forward P/E of 33.18. We also note that JILL has a PEG ratio of 0.73. 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. GOOS currently has a PEG ratio of 1.16.

Another notable valuation metric for JILL is its P/B ratio of 1.11. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, GOOS has a P/B of 18.46.

These are just a few of the metrics contributing to JILL's Value grade of A and GOOS's Value grade of D.

JILL stands above GOOS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that JILL is the superior value option right now.


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J.Jill, Inc. (JILL) : Free Stock Analysis Report
 
Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report
 
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