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HEINY or BF.B: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Heineken NV (HEINY - Free Report) and Brown-Forman B (BF.B - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Heineken NV is sporting a Zacks Rank of #2 (Buy), while Brown-Forman B has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HEINY likely has seen a stronger improvement to its earnings outlook than BF.B has recently. But this is just one piece of the puzzle 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.
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.
HEINY currently has a forward P/E ratio of 16.14, while BF.B has a forward P/E of 20.94. We also note that HEINY has a PEG ratio of 1.89. 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. BF.B currently has a PEG ratio of 6.54.
Another notable valuation metric for HEINY is its P/B ratio of 2.04. 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, BF.B has a P/B of 4.69.
These metrics, and several others, help HEINY earn a Value grade of B, while BF.B has been given a Value grade of D.
HEINY stands above BF.B thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HEINY is the superior value option right now.
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HEINY or BF.B: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Heineken NV (HEINY - Free Report) and Brown-Forman B (BF.B - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Heineken NV is sporting a Zacks Rank of #2 (Buy), while Brown-Forman B has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HEINY likely has seen a stronger improvement to its earnings outlook than BF.B has recently. But this is just one piece of the puzzle 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.
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.
HEINY currently has a forward P/E ratio of 16.14, while BF.B has a forward P/E of 20.94. We also note that HEINY has a PEG ratio of 1.89. 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. BF.B currently has a PEG ratio of 6.54.
Another notable valuation metric for HEINY is its P/B ratio of 2.04. 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, BF.B has a P/B of 4.69.
These metrics, and several others, help HEINY earn a Value grade of B, while BF.B has been given a Value grade of D.
HEINY stands above BF.B thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HEINY is the superior value option right now.