CABGY vs. NAPA: Which Stock Should Value Investors Buy Now?

CABGY NAPA

Investors with an interest in Beverages - Alcohol stocks have likely encountered both Carlsberg AS (CABGY - Free Report) and The Duckhorn Portfolio, Inc. (NAPA - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.

Carlsberg AS and The Duckhorn Portfolio, Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that CABGY likely has seen a stronger improvement to its earnings outlook than NAPA has recently. But this is just one piece of the puzzle for value investors.

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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

CABGY currently has a forward P/E ratio of 18.99, while NAPA has a forward P/E of 25.90. We also note that CABGY has a PEG ratio of 2.09. 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 2.29.

Another notable valuation metric for CABGY is its P/B ratio of 2.50. 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, NAPA has a P/B of 2.53.

Based on these metrics and many more, CABGY holds a Value grade of B, while NAPA has a Value grade of C.

CABGY stands above NAPA 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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