SGC vs. COLM: Which Stock Should Value Investors Buy Now?

Zacks
01-02

Investors with an interest in Textile - Apparel stocks have likely encountered both Superior Group (SGC) and Columbia Sportswear (COLM). 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, Superior Group is sporting a Zacks Rank of #2 (Buy), while Columbia Sportswear has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SGC likely has seen a stronger improvement to its earnings outlook than COLM has recently. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

SGC currently has a forward P/E ratio of 21.33, while COLM has a forward P/E of 21.58. We also note that SGC has a PEG ratio of 2.13. 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. COLM currently has a PEG ratio of 3.53.

Another notable valuation metric for SGC is its P/B ratio of 1.39. 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, COLM has a P/B of 2.69.

These are just a few of the metrics contributing to SGC's Value grade of A and COLM's Value grade of C.

SGC has seen stronger estimate revision activity and sports more attractive valuation metrics than COLM, so it seems like value investors will conclude that SGC is the superior option right now.

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Superior Group of Companies, Inc. (SGC) : Free Stock Analysis Report

Columbia Sportswear Company (COLM) : Free Stock Analysis Report

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