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KNBWY vs. NAPA: Which Stock Is the Better Value Option?

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Investors interested in Beverages - Alcohol stocks are likely familiar with Kirin Holdings Co. (KNBWY - Free Report) and The Duckhorn Portfolio, Inc. (NAPA - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Kirin Holdings Co. has a Zacks Rank of #2 (Buy), while The Duckhorn Portfolio, Inc. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that KNBWY likely has seen a stronger improvement to its earnings outlook than NAPA has recently. But this is just one factor that value investors are interested in.

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.

KNBWY currently has a forward P/E ratio of 16.67, while NAPA has a forward P/E of 41.92. We also note that KNBWY has a PEG ratio of 0.78. 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. NAPA currently has a PEG ratio of 4.01.

Another notable valuation metric for KNBWY is its P/B ratio of 1.61. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NAPA has a P/B of 3.04.

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

KNBWY 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 KNBWY is likely the superior value option right now.


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Kirin Holdings Co. (KNBWY) - free report >>

The Duckhorn Portfolio, Inc. (NAPA) - free report >>

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