BOOT Or PPRUY: Which Is The Better Value Stock Right Now?

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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Boot Barn (BOOT) and Kering SA (PPRUY) . 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.

Boot Barn and Kering SA are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that BOOT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

 

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.

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.

BOOT currently has a forward P/E ratio of 10.82, while PPRUY has a forward P/E of 15.96. We also note that BOOT has a PEG ratio of 0.54. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PPRUY currently has a PEG ratio of 1.91.

Another notable valuation metric for BOOT is its P/B ratio of 2.79. 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, PPRUY has a P/B of 4.58.

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

BOOT has seen stronger estimate revision activity and sports more attractive valuation metrics than PPRUY, so it seems like value investors will conclude that BOOT is the superior option right now.


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