SGC or COLM: Which Is the Better Value Stock Right Now?

Zacks
2024-11-27

Investors interested in stocks from the Textile - Apparel sector have probably already heard of Superior Group (SGC) and Columbia Sportswear (COLM). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 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.

Superior Group and Columbia Sportswear are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. 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 piece of the puzzle for value investors.

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 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.

SGC currently has a forward P/E ratio of 21.72, while COLM has a forward P/E of 22.73. We also note that SGC has a PEG ratio of 2.17. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. COLM currently has a PEG ratio of 3.71.

Another notable valuation metric for SGC is its P/B ratio of 1.41. 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 2.82.

These metrics, and several others, help SGC earn a Value grade of A, while COLM has been given a Value grade of D.

SGC 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 SGC is likely the superior value 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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