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MBUU or POOL: Which Is the Better Value Stock Right Now?

Zacks Equity Research
Hill-Rom (HRC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Investors looking for stocks in the Leisure and Recreation Products sector might want to consider either Malibu Boats (MBUU) or Pool Corp. (POOL). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Malibu Boats has a Zacks Rank of #2 (Buy), while Pool Corp. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MBUU has an improving earnings outlook. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

MBUU currently has a forward P/E ratio of 12.90, while POOL has a forward P/E of 25.62. We also note that MBUU has a PEG ratio of 0.86. 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. POOL currently has a PEG ratio of 1.09.

Another notable valuation metric for MBUU is its P/B ratio of 5.61. 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, POOL has a P/B of 28.56.

Based on these metrics and many more, MBUU holds a Value grade of A, while POOL has a Value grade of C.

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


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Malibu Boats, Inc. (MBUU) : Free Stock Analysis Report
 
Pool Corporation (POOL) : Free Stock Analysis Report
 
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