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ASBFY vs. NSRGY: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Food - Miscellaneous sector might want to consider either Associated British Foods PLC (ASBFY - Free Report) or Nestle SA (NSRGY - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Associated British Foods PLC is sporting a Zacks Rank of #1 (Strong Buy), while Nestle SA has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ASBFY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
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.
ASBFY currently has a forward P/E ratio of 11.15, while NSRGY has a forward P/E of 20.36. We also note that ASBFY has a PEG ratio of 1.48. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NSRGY currently has a PEG ratio of 2.50.
Another notable valuation metric for ASBFY is its P/B ratio of 1.35. 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, NSRGY has a P/B of 6.91.
These are just a few of the metrics contributing to ASBFY's Value grade of A and NSRGY's Value grade of C.
ASBFY 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 ASBFY is likely the superior value option right now.
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ASBFY vs. NSRGY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Food - Miscellaneous sector might want to consider either Associated British Foods PLC (ASBFY - Free Report) or Nestle SA (NSRGY - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Associated British Foods PLC is sporting a Zacks Rank of #1 (Strong Buy), while Nestle SA has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ASBFY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
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.
ASBFY currently has a forward P/E ratio of 11.15, while NSRGY has a forward P/E of 20.36. We also note that ASBFY has a PEG ratio of 1.48. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NSRGY currently has a PEG ratio of 2.50.
Another notable valuation metric for ASBFY is its P/B ratio of 1.35. 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, NSRGY has a P/B of 6.91.
These are just a few of the metrics contributing to ASBFY's Value grade of A and NSRGY's Value grade of C.
ASBFY 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 ASBFY is likely the superior value option right now.