ASO vs. PLBY: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Leisure and Recreation Products sector have probably already heard of Academy Sports and Outdoors, Inc. (ASO) and PLBY Group, Inc. (PLBY). But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Academy Sports and Outdoors, Inc. is sporting a Zacks Rank of #1 (Strong Buy), while PLBY Group, Inc. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ASO has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
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.
ASO currently has a forward P/E ratio of 8.11, while PLBY has a forward P/E of 384.63. We also note that ASO has a PEG ratio of 1.94. 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. PLBY currently has a PEG ratio of 14.79.
Another notable valuation metric for ASO is its P/B ratio of 2.74. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, PLBY has a P/B of 6.89.
Based on these metrics and many more, ASO holds a Value grade of B, while PLBY has a Value grade of F.
ASO is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ASO is likely the superior value option right now.
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Academy Sports and Outdoors, Inc. (ASO) : Free Stock Analysis Report
PLBY Group, Inc. (PLBY) : Free Stock Analysis Report
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