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ADRNY vs. PRPL: Which Stock Is the Better Value Option?

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Investors with an interest in Consumer Products - Staples stocks have likely encountered both Ahold NV (ADRNY - Free Report) and Purple Innovation (PRPL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Ahold NV and Purple Innovation are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture 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.

ADRNY currently has a forward P/E ratio of 10.95, while PRPL has a forward P/E of 78.54. We also note that ADRNY has a PEG ratio of 2.32. 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. PRPL currently has a PEG ratio of 5.24.

Another notable valuation metric for ADRNY is its P/B ratio of 2.06. 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, PRPL has a P/B of 99.50.

Based on these metrics and many more, ADRNY holds a Value grade of A, while PRPL has a Value grade of D.

Both ADRNY and PRPL are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ADRNY is the superior value option right now.


In-Depth Zacks Research for the Tickers Above


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Ahold NV (ADRNY) - free report >>

PURPLE INNOVATION, INC. (PRPL) - free report >>

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