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BRFS or MHGVY: Which Is the Better Value Stock Right Now?

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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 offers value investors a better bang for their buck right now? We'll need to 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, BRF has a Zacks Rank of #1 (Strong Buy), while Marine Harvest ASA has a Zacks Rank of #5 (Strong Sell). This means that BRFS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

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.

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 12.77, while MHGVY has a forward P/E of 14.55. We also note that BRFS has a PEG ratio of 0.35. 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 1.73.

Another notable valuation metric for BRFS is its P/B ratio of 1.28. 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 2.38.

These are just a few of the metrics contributing to BRFS's Value grade of A and MHGVY's Value grade of D.

BRFS has seen stronger estimate revision activity and sports more attractive valuation metrics than MHGVY, so it seems like value investors will conclude that BRFS is the superior option right now.


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

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