NUS or EL: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Cosmetics sector have probably already heard of Nu Skin Enterprises (NUS) and Estee Lauder (EL). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Nu Skin Enterprises is sporting a Zacks Rank of #2 (Buy), while Estee Lauder 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 NUS has 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 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.
NUS currently has a forward P/E ratio of 15.61, while EL has a forward P/E of 49.22. We also note that NUS has a PEG ratio of 2.14. 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. EL currently has a PEG ratio of 4.06.
Another notable valuation metric for NUS is its P/B ratio of 3.27. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, EL has a P/B of 20.74.
Based on these metrics and many more, NUS holds a Value grade of A, while EL has a Value grade of F.
NUS sticks out from EL in both our Zacks Rank and Style Scores models, so value investors will likely feel that NUS is the better option right now.
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Nu Skin Enterprises, Inc. (NUS) : Free Stock Analysis Report
The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report
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