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URBN or IDEXY: Which Is the Better Value Stock Right Now?

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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Urban Outfitters (URBN - Free Report) and Industria de Diseno Textil SA (IDEXY - Free Report) . 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Urban Outfitters and Industria de Diseno Textil SA are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that URBN likely has seen a stronger improvement to its earnings outlook than IDEXY has recently. However, value investors will care about much more than just this.

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 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.

URBN currently has a forward P/E ratio of 13.82, while IDEXY has a forward P/E of 18.90. We also note that URBN has a PEG ratio of 1.14. 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. IDEXY currently has a PEG ratio of 2.77.

Another notable valuation metric for URBN is its P/B ratio of 2.49. 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, IDEXY has a P/B of 8.67.

Based on these metrics and many more, URBN holds a Value grade of A, while IDEXY has a Value grade of C.

URBN stands above IDEXY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that URBN is the superior value option right now.


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