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BTVCY vs. FIZZ: Which Stock Is the Better Value Option?

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Investors with an interest in Beverages - Soft drinks stocks have likely encountered both Britvic PLC Sponsored ADR (BTVCY - Free Report) and National Beverage (FIZZ - 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Britvic PLC Sponsored ADR has a Zacks Rank of #1 (Strong Buy), while National Beverage has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that BTVCY likely has seen a stronger improvement to its earnings outlook than FIZZ 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 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.

BTVCY currently has a forward P/E ratio of 14.35, while FIZZ has a forward P/E of 18.17. We also note that BTVCY has a PEG ratio of 3.19. 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. FIZZ currently has a PEG ratio of 9.08.

Another notable valuation metric for BTVCY is its P/B ratio of 5.35. 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, FIZZ has a P/B of 5.80.

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

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


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