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PRRFY vs. POST: Which Stock Should Value Investors Buy Now?

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Investors interested in Food - Miscellaneous stocks are likely familiar with Premier Foods PLC. (PRRFY - Free Report) and Post Holdings (POST - 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.

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

Premier Foods PLC. has a Zacks Rank of #2 (Buy), while Post Holdings has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that PRRFY likely has seen a stronger improvement to its earnings outlook than POST 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.

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.

PRRFY currently has a forward P/E ratio of 3.86, while POST has a forward P/E of 18.51. We also note that PRRFY has a PEG ratio of 0.60. 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. POST currently has a PEG ratio of 3.09.

Another notable valuation metric for PRRFY is its P/B ratio of 0.28. 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, POST has a P/B of 2.08.

Based on these metrics and many more, PRRFY holds a Value grade of A, while POST has a Value grade of D.

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


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