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KRYAY or CELH: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Food - Miscellaneous sector have probably already heard of Kerry Group PLC (KRYAY - Free Report) and Celsius Holdings Inc. (CELH - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Kerry Group PLC is sporting a Zacks Rank of #2 (Buy), while Celsius Holdings Inc. has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that KRYAY likely has seen a stronger improvement to its earnings outlook than CELH has recently. 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.

KRYAY currently has a forward P/E ratio of 21.03, while CELH has a forward P/E of 39.87. We also note that KRYAY has a PEG ratio of 2.19. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CELH currently has a PEG ratio of 2.45.

Another notable valuation metric for KRYAY is its P/B ratio of 2.59. 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, CELH has a P/B of 18.24.

These are just a few of the metrics contributing to KRYAY's Value grade of B and CELH's Value grade of F.

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


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