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ASBFY vs. MGPI: Which Stock Is the Better Value Option?
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Investors interested in Food - Miscellaneous stocks are likely familiar with Associated British Foods PLC (ASBFY - Free Report) and MGP (MGPI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Associated British Foods PLC is sporting a Zacks Rank of #1 (Strong Buy), while MGP has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that ASBFY likely has seen a stronger improvement to its earnings outlook than MGPI has recently. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ASBFY currently has a forward P/E ratio of 15.55, while MGPI has a forward P/E of 21.35. We also note that ASBFY has a PEG ratio of 2.23. 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. MGPI currently has a PEG ratio of 2.37.
Another notable valuation metric for ASBFY is its P/B ratio of 1.44. 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, MGPI has a P/B of 3.15.
These are just a few of the metrics contributing to ASBFY's Value grade of B and MGPI's Value grade of C.
ASBFY stands above MGPI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ASBFY is the superior value option right now.
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ASBFY vs. MGPI: Which Stock Is the Better Value Option?
Investors interested in Food - Miscellaneous stocks are likely familiar with Associated British Foods PLC (ASBFY - Free Report) and MGP (MGPI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Associated British Foods PLC is sporting a Zacks Rank of #1 (Strong Buy), while MGP has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that ASBFY likely has seen a stronger improvement to its earnings outlook than MGPI has recently. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ASBFY currently has a forward P/E ratio of 15.55, while MGPI has a forward P/E of 21.35. We also note that ASBFY has a PEG ratio of 2.23. 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. MGPI currently has a PEG ratio of 2.37.
Another notable valuation metric for ASBFY is its P/B ratio of 1.44. 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, MGPI has a P/B of 3.15.
These are just a few of the metrics contributing to ASBFY's Value grade of B and MGPI's Value grade of C.
ASBFY stands above MGPI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ASBFY is the superior value option right now.