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BRFS vs. MHGVY: Which Stock Is the Better Value Option?

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Investors interested in Food - Miscellaneous stocks are likely familiar with BRF (BRFS - Free Report) and Marine Harvest ASA (MHGVY - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

BRF and Marine Harvest ASA are sporting Zacks Ranks of #1 (Strong Buy) and #5 (Strong Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BRFS has an improving earnings outlook. However, value investors will care about much more than just this.

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 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.

BRFS currently has a forward P/E ratio of 12.17, while MHGVY has a forward P/E of 14.96. We also note that BRFS has a PEG ratio of 0.34. 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. MHGVY currently has a PEG ratio of 1.78.

Another notable valuation metric for BRFS is its P/B ratio of 1.18. 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, MHGVY has a P/B of 2.44.

These metrics, and several others, help BRFS earn a Value grade of A, while MHGVY has been given a Value grade of D.

BRFS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BRFS is likely the superior value option right now.


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BRF S.A. (BRFS) - free report >>

Marine Harvest ASA (MHGVY) - free report >>

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