Investors interested in stocks from the Leisure and Recreation Products sector have probably already heard of Malibu Boats (MBUU) and Yeti (YETI). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Malibu Boats and Yeti are sporting a Zacks Rank of # 1 (Strong Buy). 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 piece of the puzzle for value investors.
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 10.04, while YETI has a forward P/E of 22.21. We also note that MBUU has a PEG ratio of 1. 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. YETI currently has a PEG ratio of 1.30.
Another notable valuation metric for MBUU is its P/B ratio of 4.01. 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, YETI has a P/B of 56.28.
These metrics, and several others, help MBUU earn a Value grade of A, while YETI has been given a Value grade of D.
Both MBUU and YETI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MBUU is the superior value option right now.
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Malibu Boats, Inc. (MBUU) : Free Stock Analysis Report
YETI Holdings, Inc. (YETI) : Free Stock Analysis Report
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