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KDP vs. BROS: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Beverages - Soft drinks sector might want to consider either Keurig Dr Pepper, Inc (KDP - Free Report) or Dutch Bros (BROS - 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.
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, both Keurig Dr Pepper, Inc and Dutch Bros are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
KDP currently has a forward P/E ratio of 15.62, while BROS has a forward P/E of 127.64. We also note that KDP has a PEG ratio of 2.30. 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. BROS currently has a PEG ratio of 4.41.
Another notable valuation metric for KDP is its P/B ratio of 1.54. 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, BROS has a P/B of 4.22.
These metrics, and several others, help KDP earn a Value grade of B, while BROS has been given a Value grade of C.
Both KDP and BROS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KDP is the superior value option right now.
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KDP vs. BROS: Which Stock Is the Better Value Option?
Investors looking for stocks in the Beverages - Soft drinks sector might want to consider either Keurig Dr Pepper, Inc (KDP - Free Report) or Dutch Bros (BROS - 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.
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, both Keurig Dr Pepper, Inc and Dutch Bros are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
KDP currently has a forward P/E ratio of 15.62, while BROS has a forward P/E of 127.64. We also note that KDP has a PEG ratio of 2.30. 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. BROS currently has a PEG ratio of 4.41.
Another notable valuation metric for KDP is its P/B ratio of 1.54. 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, BROS has a P/B of 4.22.
These metrics, and several others, help KDP earn a Value grade of B, while BROS has been given a Value grade of C.
Both KDP and BROS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KDP is the superior value option right now.