Yahoo Finance CROX vs. LVMUY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Textile - Apparel sector might want to consider either Crocs (CROX) or LVMH-Moet Hennessy Louis Vuitton SA (LVMUY). But which of these two stocks presents investors with the better value opportunity right now? 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 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, Crocs is sporting a Zacks Rank of #2 (Buy), while LVMH-Moet Hennessy Louis Vuitton SA 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 CROX has an improving earnings outlook. But this is just one piece of the puzzle 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.
CROX currently has a forward P/E ratio of 11.77, while LVMUY has a forward P/E of 23.87. We also note that CROX has a PEG ratio of 1.69. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LVMUY currently has a PEG ratio of 1.73.
Another notable valuation metric for CROX is its P/B ratio of 5.66. 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, LVMUY has a P/B of 6.03.
Based on these metrics and many more, CROX holds a Value grade of B, while LVMUY has a Value grade of D.
CROX stands above LVMUY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CROX is the superior value option right now.
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Crocs, Inc. (CROX) : Free Stock Analysis Report
LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) : Free Stock Analysis Report
