Yahoo Finance GIL or KTB: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Textile - Apparel sector might want to consider either Gildan Activewear (GIL) or Kontoor Brands (KTB). But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Gildan Activewear and Kontoor Brands are both sporting a Zacks Rank of # 2 (Buy) right now. 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 only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
GIL currently has a forward P/E ratio of 12.18, while KTB has a forward P/E of 15.06. We also note that GIL has a PEG ratio of 1.35. 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. KTB currently has a PEG ratio of 1.88.
Another notable valuation metric for GIL is its P/B ratio of 3.13. 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, KTB has a P/B of 10.27.
These are just a few of the metrics contributing to GIL's Value grade of B and KTB's Value grade of C.
Both GIL and KTB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GIL is the superior value option right now.
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Gildan Activewear, Inc. (GIL) : Free Stock Analysis Report
Kontoor Brands, Inc. (KTB) : Free Stock Analysis Report
