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CCEP vs. KO: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Beverages - Soft drinks sector have probably already heard of Coca-Cola European (CCEP - Free Report) and Coca-Cola (KO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Coca-Cola European is sporting a Zacks Rank of #2 (Buy), while Coca-Cola has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CCEP is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
CCEP currently has a forward P/E ratio of 19.99, while KO has a forward P/E of 23.50. We also note that CCEP has a PEG ratio of 2.62. 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. KO currently has a PEG ratio of 3.66.
Another notable valuation metric for CCEP is its P/B ratio of 4.37. 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, KO has a P/B of 9.06.
Based on these metrics and many more, CCEP holds a Value grade of B, while KO has a Value grade of F.
CCEP has seen stronger estimate revision activity and sports more attractive valuation metrics than KO, so it seems like value investors will conclude that CCEP is the superior option right now.
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CCEP vs. KO: Which Stock Is the Better Value Option?
Investors interested in stocks from the Beverages - Soft drinks sector have probably already heard of Coca-Cola European (CCEP - Free Report) and Coca-Cola (KO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Coca-Cola European is sporting a Zacks Rank of #2 (Buy), while Coca-Cola has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CCEP is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
CCEP currently has a forward P/E ratio of 19.99, while KO has a forward P/E of 23.50. We also note that CCEP has a PEG ratio of 2.62. 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. KO currently has a PEG ratio of 3.66.
Another notable valuation metric for CCEP is its P/B ratio of 4.37. 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, KO has a P/B of 9.06.
Based on these metrics and many more, CCEP holds a Value grade of B, while KO has a Value grade of F.
CCEP has seen stronger estimate revision activity and sports more attractive valuation metrics than KO, so it seems like value investors will conclude that CCEP is the superior option right now.