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KNBWY or DEO: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Kirin Holdings Co. (KNBWY - Free Report) or Diageo (DEO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Kirin Holdings Co. is sporting a Zacks Rank of #2 (Buy), while Diageo has a Zacks Rank of #5 (Strong Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that KNBWY is likely seeing its earnings outlook improve to a greater extent. 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
KNBWY currently has a forward P/E ratio of 12.14, while DEO has a forward P/E of 17.54. We also note that KNBWY has a PEG ratio of 0.69. 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. DEO currently has a PEG ratio of 3.72.
Another notable valuation metric for KNBWY 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, DEO has a P/B of 5.74.
These are just a few of the metrics contributing to KNBWY's Value grade of B and DEO's Value grade of D.
KNBWY sticks out from DEO in both our Zacks Rank and Style Scores models, so value investors will likely feel that KNBWY is the better option right now.
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KNBWY or DEO: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Kirin Holdings Co. (KNBWY - Free Report) or Diageo (DEO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Kirin Holdings Co. is sporting a Zacks Rank of #2 (Buy), while Diageo has a Zacks Rank of #5 (Strong Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that KNBWY is likely seeing its earnings outlook improve to a greater extent. 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
KNBWY currently has a forward P/E ratio of 12.14, while DEO has a forward P/E of 17.54. We also note that KNBWY has a PEG ratio of 0.69. 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. DEO currently has a PEG ratio of 3.72.
Another notable valuation metric for KNBWY 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, DEO has a P/B of 5.74.
These are just a few of the metrics contributing to KNBWY's Value grade of B and DEO's Value grade of D.
KNBWY sticks out from DEO in both our Zacks Rank and Style Scores models, so value investors will likely feel that KNBWY is the better option right now.