Investors interested in stocks from the Leisure and Recreation Products sector have probably already heard of Yeti (YETI) and Sportradar Group AG (SRAD). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Currently, both Yeti and Sportradar Group AG are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
YETI currently has a forward P/E ratio of 9.92, while SRAD has a forward P/E of 70.43. We also note that YETI has a PEG ratio of 0.73. 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. SRAD currently has a PEG ratio of 1.41.
Another notable valuation metric for YETI is its P/B ratio of 3.30. 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, SRAD has a P/B of 25.39.
These metrics, and several others, help YETI earn a Value grade of A, while SRAD has been given a Value grade of D.
Both YETI and SRAD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that YETI is the superior value option right now.
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YETI Holdings, Inc. (YETI): Free Stock Analysis Report Sportradar Group AG (SRAD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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