IInvestors interested in Retail – Miscellaneous stocks have probably heard of Arhaus, Inc. (ARHS) and Tractor Supply (TSCO). But which of these two stocks is the most attractive for value investors? We’ll have to look closer to find out.

The best way to find great value stocks is to combine a solid Zacks ranking with an impressive rating in the Value category of our Style Scores system. The proven Zacks ranking emphasizes earnings estimates and estimate revisions, while our style scores identify stocks with specific characteristics.

Arhaus, Inc. has a Zacks Rank of #2 (Buy), while Tractor Supply has a Zacks Rank of #3 (Hold) at this time. The Zacks ranking favors stocks that have recently seen positive revisions to their earnings estimates, so investors should be assured that the ARHS has an improving earnings outlook. However, value investors will care about much more than that.

Value investors also try to analyze a wide range of traditional numbers and metrics to help determine if a company is undervalued at its current stock price level.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including popular P/E ratio, as well as P/S ratio, earnings yield, cash flow per share and a variety other fundamentals that have been used. by value investors for years.

ARHS currently has a forward P/E of 8.91, while TSCO has a forward P/E of 20.88. We also note that the ARHS has a PEG ratio of 0.64. This measure is used in the same way as the famous P/E ratio, but the PEG ratio also takes into account the growth rate of the stock’s expected earnings. TSCO currently has a PEG ratio of 2.07.

Another notable valuation metric for ARHS is its P/E ratio of 9.01. P/B is a method of comparing the market value of a stock to its book value, which is defined as total assets minus total liabilities. In comparison, TSCO has a P/B of 12.42.

Based on these metrics and more, ARHS holds an A value rating, while TSCO has a C value rating.

ARHS is currently showing an improving earnings outlook, making it stand out in our Zacks Rank model. And, based on the valuation metrics above, we think ARHS is likely the higher value option right now.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.