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CCEP or MNST: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Beverages - Soft drinks sector might want to consider either Coca-Cola European (CCEP - Free Report) or Monster Beverage (MNST - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Coca-Cola European and Monster Beverage are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that CCEP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
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.
CCEP currently has a forward P/E ratio of 16.22, while MNST has a forward P/E of 44.79. We also note that CCEP has a PEG ratio of 1.37. 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. MNST currently has a PEG ratio of 3.94.
Another notable valuation metric for CCEP is its P/B ratio of 3.04. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, MNST has a P/B of 7.88.
Based on these metrics and many more, CCEP holds a Value grade of A, while MNST has a Value grade of D.
CCEP stands above MNST thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CCEP is the superior value option right now.
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CCEP or MNST: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Beverages - Soft drinks sector might want to consider either Coca-Cola European (CCEP - Free Report) or Monster Beverage (MNST - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Coca-Cola European and Monster Beverage are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that CCEP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
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.
CCEP currently has a forward P/E ratio of 16.22, while MNST has a forward P/E of 44.79. We also note that CCEP has a PEG ratio of 1.37. 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. MNST currently has a PEG ratio of 3.94.
Another notable valuation metric for CCEP is its P/B ratio of 3.04. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, MNST has a P/B of 7.88.
Based on these metrics and many more, CCEP holds a Value grade of A, while MNST has a Value grade of D.
CCEP stands above MNST thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CCEP is the superior value option right now.