IDEXY vs. DECK: Which Stock Is the Better Value Option?

In This Article:

Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both Industria de Diseno Textil SA (IDEXY) and Deckers (DECK). 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, both Industria de Diseno Textil SA and Deckers are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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 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.

IDEXY currently has a forward P/E ratio of 26.49, while DECK has a forward P/E of 29. We also note that IDEXY has a PEG ratio of 2.10. 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. DECK currently has a PEG ratio of 2.23.

Another notable valuation metric for IDEXY is its P/B ratio of 10.08. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, DECK has a P/B of 10.81.

These are just a few of the metrics contributing to IDEXY's Value grade of B and DECK's Value grade of D.

Both IDEXY and DECK are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that IDEXY is the superior value 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

Industria de Diseno Textil SA (IDEXY) : Free Stock Analysis Report

Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report