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BRFS vs. KRYAY: Which Stock Is the Better Value Option?

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Investors interested in Food - Miscellaneous stocks are likely familiar with BRF (BRFS - Free Report) and Kerry Group PLC (KRYAY - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, BRF is sporting a Zacks Rank of #2 (Buy), while Kerry Group PLC has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BRFS has an improving earnings outlook. 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 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.

BRFS currently has a forward P/E ratio of 9.87, while KRYAY has a forward P/E of 19.71. We also note that BRFS has a PEG ratio of 0.25. 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. KRYAY currently has a PEG ratio of 2.

Another notable valuation metric for BRFS is its P/B ratio of 1.60. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, KRYAY has a P/B of 2.37.

These are just a few of the metrics contributing to BRFS's Value grade of A and KRYAY's Value grade of C.

BRFS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BRFS is likely the superior value option right now.


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BRF S.A. (BRFS) - free report >>

Kerry Group PLC (KRYAY) - free report >>

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