YETI or POOL: Which Is the Better Value Stock Right Now?

Investors looking for stocks in the Leisure and Recreation Products sector might want to consider either Yeti (YETI) or Pool Corp. (POOL). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Yeti has a Zacks Rank of #2 (Buy), while Pool Corp. has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that YETI is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

YETI currently has a forward P/E ratio of 15.61, while POOL has a forward P/E of 32.08. We also note that YETI has a PEG ratio of 1.07. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. POOL currently has a PEG ratio of 2.14.

Another notable valuation metric for YETI is its P/B ratio of 4.55. 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, POOL has a P/B of 9.47.

Based on these metrics and many more, YETI holds a Value grade of B, while POOL has a Value grade of C.

YETI sticks out from POOL in both our Zacks Rank and Style Scores models, so value investors will likely feel that YETI is the better option right now.

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