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KRYAY or NSRGY: Which Is the Better Value Stock Right Now?

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Investors interested in Food - Miscellaneous stocks are likely familiar with Kerry Group PLC (KRYAY - Free Report) and Nestle SA (NSRGY - 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 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.

Kerry Group PLC has a Zacks Rank of #2 (Buy), while Nestle SA has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that KRYAY has an improving earnings outlook. But this is just one piece of the puzzle 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.

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.

KRYAY currently has a forward P/E ratio of 17.65, while NSRGY has a forward P/E of 18.32. We also note that KRYAY has a PEG ratio of 1.96. 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. NSRGY currently has a PEG ratio of 2.28.

Another notable valuation metric for KRYAY is its P/B ratio of 2.12. 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, NSRGY has a P/B of 6.66.

These metrics, and several others, help KRYAY earn a Value grade of B, while NSRGY has been given a Value grade of C.

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


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