Investors interested in Beverages - Soft drinks stocks are likely familiar with Coca-Cola European (CCEP - Free Report) and Dutch Bros (BROS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Coca-Cola European and Dutch Bros are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CCEP has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
CCEP currently has a forward P/E ratio of 15.79, while BROS has a forward P/E of 162.19. We also note that CCEP has a PEG ratio of 2.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BROS currently has a PEG ratio of 4.07.
Another notable valuation metric for CCEP is its P/B ratio of 3.39. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, BROS has a P/B of 5.29.
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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Investors interested in Beverages - Soft drinks stocks are likely familiar with Coca-Cola European (CCEP - Free Report) and Dutch Bros (BROS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Coca-Cola European and Dutch Bros are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CCEP has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
CCEP currently has a forward P/E ratio of 15.79, while BROS has a forward P/E of 162.19. We also note that CCEP has a PEG ratio of 2.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BROS currently has a PEG ratio of 4.07.
Another notable valuation metric for CCEP is its P/B ratio of 3.39. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, BROS has a P/B of 5.29.
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.
Top 5 Dividend Stocks for Your Retirement
Zacks targets 5 well-established companies with solid fundamentals and a history of raising dividends. More importantly, they have the resources and will to likely pay them in the future.
Click now for a Special Report packed with unconventional wisdom and insights you simply won’t get from your neighborhood financial planner.
See our Top 5 now – the report is FREE >>
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