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KNBWY or SAM: Which Is the Better Value Stock Right Now?

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Investors with an interest in Beverages - Alcohol stocks have likely encountered both Kirin Holdings Co. (KNBWY - Free Report) and Boston Beer (SAM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Kirin Holdings Co. has a Zacks Rank of #1 (Strong Buy), while Boston Beer has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that KNBWY likely has seen a stronger improvement to its earnings outlook than SAM has recently. But this is only part of the picture 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

KNBWY currently has a forward P/E ratio of 11.94, while SAM has a forward P/E of 28.55. We also note that KNBWY has a PEG ratio of 0.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SAM currently has a PEG ratio of 1.10.

Another notable valuation metric for KNBWY is its P/B ratio of 1.12. 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, SAM has a P/B of 3.34.

These are just a few of the metrics contributing to KNBWY's Value grade of B and SAM's Value grade of C.

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


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The Boston Beer Company, Inc. (SAM) - free report >>

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