Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Canada Goose (GOOS) and MINISO Group Holding Limited Unsponsored ADR (MNSO). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Canada Goose is sporting a Zacks Rank of #2 (Buy), while MINISO Group Holding Limited Unsponsored ADR has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that GOOS likely has seen a stronger improvement to its earnings outlook than MNSO has recently. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

GOOS currently has a forward P/E ratio of 9.09, while MNSO has a forward P/E of 12.09. We also note that GOOS has a PEG ratio of 0.61. 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. MNSO currently has a PEG ratio of 0.67.

Another notable valuation metric for GOOS is its P/B ratio of 2.08. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, MNSO has a P/B of 3.59.

Based on these metrics and many more, GOOS holds a Value grade of A, while MNSO has a Value grade of D.

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

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Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report

MINISO Group Holding Limited Unsponsored ADR (MNSO) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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