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SKX vs. BIRK: Which Stock Is the Better Value Option?
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Investors with an interest in Shoes and Retail Apparel stocks have likely encountered both Skechers (SKX - Free Report) and Birkenstock (BIRK - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Skechers and Birkenstock are both sporting a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.
SKX currently has a forward P/E ratio of 14.59, while BIRK has a forward P/E of 25.22. We also note that SKX has a PEG ratio of 0.86. 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. BIRK currently has a PEG ratio of 1.01.
Another notable valuation metric for SKX is its P/B ratio of 1.94. 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, BIRK has a P/B of 3.15.
These are just a few of the metrics contributing to SKX's Value grade of A and BIRK's Value grade of D.
Both SKX and BIRK are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SKX is the superior value option right now.
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SKX vs. BIRK: Which Stock Is the Better Value Option?
Investors with an interest in Shoes and Retail Apparel stocks have likely encountered both Skechers (SKX - Free Report) and Birkenstock (BIRK - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Skechers and Birkenstock are both sporting a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.
SKX currently has a forward P/E ratio of 14.59, while BIRK has a forward P/E of 25.22. We also note that SKX has a PEG ratio of 0.86. 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. BIRK currently has a PEG ratio of 1.01.
Another notable valuation metric for SKX is its P/B ratio of 1.94. 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, BIRK has a P/B of 3.15.
These are just a few of the metrics contributing to SKX's Value grade of A and BIRK's Value grade of D.
Both SKX and BIRK are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SKX is the superior value option right now.