ASO or YETI: Which Is the Better Value Stock Right Now?
ASO vs. YETI: Which Stock Is the Better Value Option?
Investors interested in Leisure and Recreation Products stocks are likely familiar with Academy Sports and Outdoors, Inc. (ASO) and Yeti (YETI). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Academy Sports and Outdoors, Inc. and Yeti are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that ASO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 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.
ASO currently has a forward P/E ratio of 7.23, while YETI has a forward P/E of 43.46. We also note that ASO has a PEG ratio of 0.58. 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. YETI currently has a PEG ratio of 2.97.
Another notable valuation metric for ASO is its P/B ratio of 2.93. 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, YETI has a P/B of 24.53.
Based on these metrics and many more, ASO holds a Value grade of A, while YETI has a Value grade of D.
ASO has seen stronger estimate revision activity and sports more attractive valuation metrics than YETI, so it seems like value investors will conclude that ASO is the superior option right now.
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Academy Sports and Outdoors, Inc. (ASO): Free Stock Analysis Report
YETI Holdings, Inc. (YETI): Free Stock Analysis Report
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