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GNCGY vs. CPB: Which Stock Should Value Investors Buy Now?

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Investors interested in Food - Miscellaneous stocks are likely familiar with GREENCORE GRP (GNCGY - Free Report) and Campbell Soup (CPB - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

GREENCORE GRP and Campbell Soup are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GNCGY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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.

GNCGY currently has a forward P/E ratio of 11.77, while CPB has a forward P/E of 18.69. We also note that GNCGY has a PEG ratio of 1.40. 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. CPB currently has a PEG ratio of 3.11.

Another notable valuation metric for GNCGY is its P/B ratio of 5.58. 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, CPB has a P/B of 12.82.

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

GNCGY sticks out from CPB in both our Zacks Rank and Style Scores models, so value investors will likely feel that GNCGY is the better option right now.


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