Back to top

Image: Bigstock

KRYAY vs. NSRGY: Which Stock Is the Better Value Option?

Read MoreHide Full Article

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 presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Kerry Group PLC has a Zacks Rank of #2 (Buy), while Nestle SA has a Zacks Rank of #3 (Hold). 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 analyze a variety of traditional, tried-and-true metrics to help find companies 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.

KRYAY currently has a forward P/E ratio of 16.79, while NSRGY has a forward P/E of 19.37. We also note that KRYAY has a PEG ratio of 1.87. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NSRGY currently has a PEG ratio of 2.41.

Another notable valuation metric for KRYAY is its P/B ratio of 2.01. 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, NSRGY has a P/B of 7.03.

Based on these metrics and many more, KRYAY holds a Value grade of B, while NSRGY has a Value grade of C.

KRYAY 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 KRYAY is likely the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Nestle SA (NSRGY) - free report >>

Kerry Group PLC (KRYAY) - free report >>

Published in