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UTZ vs. CELH: Which Stock Is the Better Value Option?

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Investors with an interest in Food - Miscellaneous stocks have likely encountered both Utz Brands (UTZ - Free Report) and Celsius Holdings Inc. (CELH - 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.

Currently, Utz Brands has a Zacks Rank of #2 (Buy), while Celsius Holdings Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that UTZ likely has seen a stronger improvement to its earnings outlook than CELH has recently. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

UTZ currently has a forward P/E ratio of 22.92, while CELH has a forward P/E of 53.71. We also note that UTZ has a PEG ratio of 1.13. 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. CELH currently has a PEG ratio of 1.65.

Another notable valuation metric for UTZ is its P/B ratio of 1.67. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CELH has a P/B of 39.08.

These metrics, and several others, help UTZ earn a Value grade of B, while CELH has been given a Value grade of D.

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


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