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CCEP or BROS: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Beverages - Soft drinks sector might want to consider either Coca-Cola European (CCEP - Free Report) or Dutch Bros (BROS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Currently, Coca-Cola European has a Zacks Rank of #2 (Buy), while Dutch Bros has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CCEP likely has seen a stronger improvement to its earnings outlook than BROS has recently. But this is only part of the picture 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 16.90, while BROS has a forward P/E of 184.84. We also note that CCEP has a PEG ratio of 2.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BROS currently has a PEG ratio of 4.02.
Another notable valuation metric for CCEP is its P/B ratio of 3.80. 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, BROS has a P/B of 5.14.
Based on these metrics and many more, CCEP holds a Value grade of B, while BROS has a Value grade of C.
CCEP stands above BROS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CCEP is the superior value option right now.
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CCEP or BROS: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Beverages - Soft drinks sector might want to consider either Coca-Cola European (CCEP - Free Report) or Dutch Bros (BROS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Currently, Coca-Cola European has a Zacks Rank of #2 (Buy), while Dutch Bros has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CCEP likely has seen a stronger improvement to its earnings outlook than BROS has recently. But this is only part of the picture 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 16.90, while BROS has a forward P/E of 184.84. We also note that CCEP has a PEG ratio of 2.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BROS currently has a PEG ratio of 4.02.
Another notable valuation metric for CCEP is its P/B ratio of 3.80. 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, BROS has a P/B of 5.14.
Based on these metrics and many more, CCEP holds a Value grade of B, while BROS has a Value grade of C.
CCEP stands above BROS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CCEP is the superior value option right now.