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

Zacks
02 Jan

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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Columbia Sportswear Company (COLM) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10