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TAP or BUD: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Molson Coors Brewing (TAP - Free Report) or Anheuser-Busch Inbev (BUD - Free Report) . 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.
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 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.
Molson Coors Brewing and Anheuser-Busch Inbev are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TAP is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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.
TAP currently has a forward P/E ratio of 11.47, while BUD has a forward P/E of 21.77. We also note that TAP has a PEG ratio of 3.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BUD currently has a PEG ratio of 7.59.
Another notable valuation metric for TAP is its P/B ratio of 1.45. 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, BUD has a P/B of 2.10.
These are just a few of the metrics contributing to TAP's Value grade of B and BUD's Value grade of C.
TAP stands above BUD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TAP is the superior value option right now.
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TAP or BUD: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Molson Coors Brewing (TAP - Free Report) or Anheuser-Busch Inbev (BUD - Free Report) . 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.
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 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.
Molson Coors Brewing and Anheuser-Busch Inbev are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TAP is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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.
TAP currently has a forward P/E ratio of 11.47, while BUD has a forward P/E of 21.77. We also note that TAP has a PEG ratio of 3.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BUD currently has a PEG ratio of 7.59.
Another notable valuation metric for TAP is its P/B ratio of 1.45. 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, BUD has a P/B of 2.10.
These are just a few of the metrics contributing to TAP's Value grade of B and BUD's Value grade of C.
TAP stands above BUD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TAP is the superior value option right now.