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CABGY vs. STZ: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Carlsberg AS (CABGY - Free Report) or Constellation Brands (STZ - 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.
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 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.
Carlsberg AS and Constellation Brands are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CABGY has an improving earnings outlook. However, value investors will care about much more than just this.
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.
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.
CABGY currently has a forward P/E ratio of 17.55, while STZ has a forward P/E of 21.10. We also note that CABGY has a PEG ratio of 1.90. 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. STZ currently has a PEG ratio of 2.30.
Another notable valuation metric for CABGY is its P/B ratio of 2.65. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, STZ has a P/B of 4.76.
Based on these metrics and many more, CABGY holds a Value grade of B, while STZ has a Value grade of F.
CABGY stands above STZ thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CABGY is the superior value option right now.
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CABGY vs. STZ: Which Stock Is the Better Value Option?
Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Carlsberg AS (CABGY - Free Report) or Constellation Brands (STZ - 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.
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 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.
Carlsberg AS and Constellation Brands are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CABGY has an improving earnings outlook. However, value investors will care about much more than just this.
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.
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.
CABGY currently has a forward P/E ratio of 17.55, while STZ has a forward P/E of 21.10. We also note that CABGY has a PEG ratio of 1.90. 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. STZ currently has a PEG ratio of 2.30.
Another notable valuation metric for CABGY is its P/B ratio of 2.65. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, STZ has a P/B of 4.76.
Based on these metrics and many more, CABGY holds a Value grade of B, while STZ has a Value grade of F.
CABGY stands above STZ thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CABGY is the superior value option right now.